Sean Kevelighan, CEO of the Insurance Information Institute, said there was a moment in 2020 that was “touch and go” for the industry, in the face of the pandemic.

He and I were talking in advance of Thursday’s Joint Industry Forum, the III conference that is the first big event of the year and that sets an agenda for the industry (more on the forum in a bit), when he described how close the industry had come to being whacked with potentially hundreds of billions of dollars of business interruption claims. BI claims were obviously a potentially big deal, even though it was clear early on that few policies in the U.S. covered them, and I have seen that the issue faded, but I didn’t realize quite what a close call the industry had.

“The industry collaborated more than I’ve ever seen us do,” Kevelighan said. “Everyone has shown that the industry can come together and lead in a very disruptive time.”

Kevelighan said plaintiffs attorneys saw an opportunity early and won sympathy with state legislators, eager to help their small-business constituents. Some celebrity chefs formed a group to make the case publicly that they would go out of business if insurers didn’t cover their pandemic-related losses. Something called the Business Interruption Group even got businesses in Times Square to shut off their lights for a minute in May to dramatize the threat.

III countered with a campaign that made two main points. First, that the policies didn’t provide business interruption coverage for a pandemic and that rewriting contracts after the fact was unfair. Second, that a pandemic isn’t an insurable event. Yes, the industry had $800 billion in surplus, but covering all the potential BI claims would cost the industry $400 billion a month – so those small businesses could only be covered briefly by insurers, and then the money would be gone. Legislators would then have to face constituents who were hit by hurricanes, wildfires and so on and who had valid claims – but whose insurers couldn’t pay.

III got the word out through hundreds of media interviews, through email blasts to anyone who was in a position of influence and through a website. Kevelighan said the industry more than did its part as good citizens: providing more than $14 billion in rebates just in auto premiums, making $300 million in charitable contributions, paying claims in new and innovative ways and committing to keeping employees on the payroll. He says all parts of the industry are now hiring.

The situation was still touch and go until a hearing before a House subcommittee on May 21. But at the hearing, conducted via WebEx, the main plaintiff attorney didn’t even advance the idea that contracts should be rewritten to make insurers liable. Instead, he suggested that insurers could voluntarily cover business interruption and then, he hoped, be reimbursed by the federal government – an idea that went nowhere.

“Congressmen were very aggressive about defending their constituents – if a hurricane or wildfire hits, there needs to be money there,” Kevelighan said. “We all empathized with the customer. Sure, customers should be scared. But the response to a pandemic has to come from the federal government.”

He added that the quick mobilization in the face of such a threat “shows how nimble the industry can be.”

Building on that experience, Kevelighan said, the first panel at the Joint Industry Forum will comprise CEOs who will discuss other industrywide issues, including what the effects of the new Biden administration will be.

“You’re certainly going to see some things that were started in the last Democratic administration that kind of went by the wayside but that may well resurface,” Kevelighan said.

He cited the Federal Insurance Office and Consumer Financial Protection Bureau as potential examples. He added that “it’s been said that every part of the Biden administration has a climate change piece to it.

Kevelighan said the insurance industry can play a leading role on climate risk – which is the subject of the next panel at the Joint Industry Forum. He cited, for instance, a III project called the Resilience Accelerator, which is trying to drive behavioral change to reduce risks such as those from wildfires and floods.

“Risk never really comes into play in the property-buying process at the moment,” he said. “You go into the beautiful forests in California and decide you want to build there, but nobody talks to you about the wildfire risk. We’re trying to change that.”

He’ll close the brief event with a fireside chat with Richard P. Creedon, chairman and CEO of Utica National Insurance Group, that will, among other things, cover that old favorite: regulatory issues.

I’ve found these events to be very useful in the past and hope you’ll join me at this virtual event, then hope we’ll all see each other at what III expects will be an in-person event in Washington, DC, in June.

Stay safe.

Paul

P.S. Here are the six articles I'd like to highlight from the past week:

20 Issues to Watch in 2021

Presumptions for COVID-19 show how the line between workers’ comp and group health continues to blur.

Crowdsourcing 6 Themes for 2021

Trust in insurance has been dealt a double blow in 2020 -- and resolving that must be a priority in 2021.

Despite COVID, Tech Investment Continues

Interest remains high in technologies like artificial intelligence and big data.

Did Biden Just Kill Wellness Programs?

Advisers need to be aware that many if not most clinical wellness programs now expose clients to employee EEOC actions.

What 2020 Taught Us on Selling Insurance

Insurance policies that are sold online need to be packaged and priced differently than those that rely on face-to-face sales.

Home Insurance for Those Needing It Most

Sugar, a startup in South Africa, provides home insurance even for shacks costing a few hundred dollars, and without a street address.

Insurers will continue to experiment with emerging technology in 2021, despite the challenges of 2020. When the COVID-19 pandemic hit, many insurers paused their 2020 innovation plans, emphasizing digital workflows and cost control at the expense of emerging technology pilots. Heading into 2021, technology priorities for many insurers, especially those in the property/casualty space, are similar to those of 2019.

The U.S. is still in the midst of the pandemic, and some insurers are anticipating lower premium revenues for the coming year. In spite of this, insurers are investing in technologies like artificial intelligence and big data, though some are narrowing the scope of their innovation efforts for the coming year.  

Understanding Emerging Technology Today

Insurers typically take a few main approaches to emerging technologies. Early adopters experiment with the technology, typically via a limited pilot. If the technology creates value, it’s moved into wider production. Insurers that have taken a “wait-and-see” approach may launch pilots of their own.

Novarica’s insights on insurers’ plans for emerging technology are drawn from our annual Research Council study, where CIOs from more than 100 insurers indicate their plans for new technologies in the coming year.

No insurer can test-drive every leading-edge technology at once, and every insurer’s priority is a result of its overall strategy and immediate pressures. Still, at a high level, several industry-wide trends are apparent:

There is big growth in RPA; chatbots continue to expand. More than half of all insurers have now deployed robotic process automation (RPA), compared with less than a quarter in 2018. Chatbots are less widely deployed but on a similar trajectory: from one in 10 in 2018 to one in four today.

AI and big data continue to receive significant investment. These technologies take time to mature, but it’s clear insurers believe in the value they can provide. More than one in five insurers have current or planned pilot programs in these areas for 2021.

Half of insurers have low-/no-code capabilities or pilots. These types of platforms are relatively new but have achieved substantial penetration in a short time. Early signs indicate they could become a durable tool for facilitating better collaboration between IT and business experts.

Despite continued tech investment, 2021 might be a more difficult year for innovation. Insurers’ technology priorities have generally reverted to the mean — more so for property/casualty than for life/annuity insurers — and technology budgets for 2021 are within historical norms. Still, some insurers are paring down pilot activity in less proven technologies, like wearables, to maintain their focus on areas like AI and big data. Technologies with substantial up-front costs, like telematics, may be harder to kick off in 2021. 

See also: Technology and the Agent of the Future

How Emerging Technology Grows

Emerging technologies have widely varying rates of experimentation, deployment and growth within the insurance sector. Their growth rates boil down to a few key related factors:

• How easily the technology is understood.
• How readily it can be deployed and integrated with existing processes.
• How clearly the value it creates can be measured and communicated.

At one end of the spectrum are technologies like RPA and chatbots. These technologies create clear value, are readily added to existing processes and are relatively easy to deploy. As a result, insurers have adopted them rapidly.

Artificial intelligence and big data technologies require longer learning periods; sometimes, they require business processes to be completely reengineered. The technologies create value for insurers but have grown more slowly because they take time to understand and integrate.

Drones, the Internet of Things (IoT) and telematics can create new kinds of insurance products or collect new kinds of information. These can also create value, but their growth remains slow because developing these technologies may require orchestration across several functional areas, and they can be costly to ramp up.

On the far end of the spectrum are technologies like augmented and virtual reality, blockchain, smart assistants and wearables. Most of these technologies don’t yet have established use cases that demonstrate clear value, so it remains to be seen whether they will be adopted more widely.

Using Emerging Technology

One key insight from Novarica’s study is that technologies that integrate readily to existing processes can grow more rapidly than technologies that require new workflows to fully use. This observation comes with a few caveats for both insurers and technology vendors.

Insurers sometimes fall into the trap of “repaving the cowpath” — they adopt new technologies but integrate them into their existing (inefficient) business processes. Doing so means they can’t get maximum value from their investment. Ironically, it’s usually the shortcomings of legacy technology that have made these processes cumbersome in the first place.

It’s easy to understand the value that technology creates when it integrates with an existing process and can be measured with the same key performance indicators (KPIs). It’s much harder to create a new process enabled by new capabilities, train employees to execute it and demonstrate that the new way is better than the old way. Yet getting the most out of emerging technologies often requires rethinking how business might be done.

See also: 2021’s Key Technology Trends

For their part, vendors should focus on the value their products create and the problems they solve, aligning them to insurer needs. It’s not enough to use a new technology for its own sake, and using new tools sub-optimally may make them seem less effective. Vendors should coach their insurer clients through best practices and help them understand how their tools can ease, change or make obsolete existing processes.

At its core, insurance is a simple industry focused on connecting those exposed to risk to capital that can defray potential losses. At the center of that value chain are insurers, that continue to explore new technologies to better understand their risks, sell more and operate more efficiently. Even in uncertain times, insurers are innovating.

Out Front Ideas with Kimberly and Mark kicks off every year with our popular 20 Issues to Watch webinar. While there are certainly more than 20 issues to discuss after the unprecedented events of 2020, we focused on the high-impact issues relating to workers’ compensation, healthcare and risk management. These are all important issues for every risk manager and insurance professional to monitor in 2021. 

1. Healthcare Watch

President Biden’s healthcare plan has been referred to as ACA 2.0, as his approach is expected to build on the Affordable Care Act. As a longtime supporter of public options, President Biden will likely give consumers access to Medicare-style health plans, along with an option to continue private insurance. In keeping with the ACA, expect to see the return of the individual mandate and associated penalty removed in 2017.

For most of 2020, there was a significant decrease in employer healthcare spending due to limited in-person care caused by COVID-19. Many employers spent less than in 2019, with average savings around .5% to 2%. Ambulatory care settings and hospital admissions accounted for the largest areas of decreased spending. However, pharmaceutical costs, as projected, increased roughly 6% due to the pandemic. 

Telehealth continues to rise in popularity, with its ever-increasing accessibility. Its long-term use remains unknown due to dependence on government regulations, but expect its continued use in the short term from health providers accustomed to its use. 

2. Political Polarization

With Democrats holding a narrow majority in the House and controlling the split Senate, it is uncertain whether there will be a sweeping or incremental change, especially because President Biden has historically been a political moderate. The secretary of Labor nominee, Marty Walsh, was a former union leader and strong supporter of organized labor, so expect potential Department of Labor policy changes, especially in Occupational Safety and Health Administration (OSHA) enforcement and independent contractor classification.

Political polarization has created continued conflicts for much of our history. There is much work to be done to restore public trust, reduce conflicts and provide a better path forward for our country. 

3. COVID-19 Vaccine Considerations for Employers

Employers are currently assessing their options for requiring employee vaccinations. While employers that primarily have employees working from home have fewer concerns than those working directly with the public, all employers have questions regarding a mandatory vaccine policy. Updated Equal Employment Opportunity Commission (EEOC) guidelines published Dec. 16 state that employers can require workers to be vaccinated, with some limitations, including:

• Title VII religious exemptions
• Americans with Disabilities Act accommodations 
• Any additional rights that apply to either EEO laws or federal, state and local authorities

Like all employment law, expect there may be litigation over employer mandates to require the vaccine. In developing policies, employers will be considering not only their workforce but the expectations from the general public they interact with. 

4. Supply Chain Diversification

COVID-19 caused significant disruption in the U.S. drug supply chain because 80% of the necessary components used in pharmaceutical manufacturing for the country come from China and India. China is also responsible for around 80% of the essential elements used in personal protective equipment (PPE), leading to a shortage during the start of the pandemic. 

These supply chain disruptions were widespread and illustrated the need to diversify sources and not rely on imported goods for critical components. Diversification will make companies more resilient to unexpected events such as natural disasters, political unrest, trade sanctions and other pandemics. 

5. Public Health Policy

Over the decades, public health achievements have included childhood vaccination programs, fluoridation of drinking water and the global commitment to eradicating HIV/AIDS. There are many public health services we should be able to rely on, including preparedness and response capabilities, addressing and diagnosing health hazards, informing and educating the public and strengthening and mobilizing communities, to name a few.

However, a lack of coordination between the federal government and state public health officials led to poor planning and response to the pandemic. Successful public health initiatives rely on people’s trust in public health, but poor communication, mixed messaging and inconsistency in applications and expectations only furthered challenges. 

Public health in the U.S. has generally struggled to make a clear and compelling case for prevention and non-medical approaches to health and well-being. Public health would benefit from leaders focusing on building trust and connecting with communities’ shared values, inspiring participation and active listening.

See also: Don’t Go Into Recovery Mode in 2021; Reset

6. COVID-19 Claims Development

The workers’ compensation industry has seen tens of thousands of COVID-19 claims. According to industry data, the vast majority of those claims are small, with average paid figures just over $1,000. However, the industry has also seen many claims over $1 million incurred on cases that resulted in death or had an extended ICU hospitalization. There could be additional development on these claims as long-term health consequences from COVID-19 become apparent.  

Businesses are seeing COVID-19 related litigation in other areas, including business interruption, employers’ liability, general liability, employment practices liability and even directors and officers coverage.

7. Evolving Employee Benefits

In 2021, expect more employer emphasis on addressing mental health and well-being in the workplace. There are more employer offerings with telehealth’s continued use, like mental health apps and videos with on-demand options. The Center for Workplace Mental Health provides a wealth of employer support for workplace well-being, like the new program Notice. Talk. Act, which offers training for company leaders to improve their understanding of mental health on employees and the organization.

Understanding financial health is a primary concern for employees across the country because the pandemic left many unemployed. Many employers have partnered with their 401K providers to provide webinars and online tools to assist their employees with budgeting and forecasting expenses. Group health solutions are also assisting employees in better understanding copays, deductibles and high-quality care options, ultimately driving down costs and improving healing times.

Flexible work schedules and time away programs are being altered for 2021. Split schedules or starting earlier or later are options many employers are adopting as workers are challenged with their children’s online learning needs or caregiving opportunities. Additionally, the pandemic has caused financial problems for many, adding to stress and anxiety for workers. Allowing and encouraging time away from work is necessary to create a healthier, more productive workforce.

8. Redefining Workers’ Compensation

Presumptions for COVID-19 are just the latest example of how workers’ compensation continues to expand beyond its original design of covering only traumatic accidents in the workplace. As more conditions and diseases are deemed work-related, and more presumption laws are passed, the line between workers’ compensation and group health continues to blur. 

9. COVID-19 as a Comorbidity

While we still know very little about the long-term effects of COVID-19, we know that there is an increasing number of patients experiencing new symptoms months after recovery. These symptoms range from blood clots to neurological symptoms, like brain fog and confusion, to continued respiratory challenges, like shortness of breath. There have also been reported psychosocial effects like anxiety, hopelessness, depression and post-traumatic stress disorder (PTSD), especially in healthcare workers and ICU patients. 

If a large percentage of COVID-19 patients develop long-term physical and mental side effects from the disease, it could increase claims for years to come and even have the potential to be comparable to existing comorbidities such as obesity or diabetes. 

10. Post-COVID-19 Analytics and Benchmarking

The insurance industry and risk managers rely heavily on actuarial models and benchmarks to analyze performance and predict future exposures. One of the core assumptions of analytics and benchmarking is that most analysis components are under conditions similar to the past. However, the pandemic introduced several variables into the analysis that raise questions about the validity of those models in the future. 

In workers’ compensation, frequency models have been disrupted, and there have been delays in medical treatment, litigation and return to work. Carriers are also having to develop new risk models that take into account the potential impact of future pandemics.

11. Employers Addressing Caregiving

Caregiving challenges were mounting for employers in advance of the pandemic. They were magnified because of work from home, school closures, after-school programs, day care and elder care programs. Supporting employees who are also caregivers means first understanding the impact of caregiving on your workforce, then implementing policies, programs and benefits that offer them tools to assist. These may include offerings to support balancing work and caregiving and case management support to coordinate or find caregivers. Employers that are advancing programs such as these use employee peer groups to partner with human resources and business leaders to create programs and offer a feedback loop regarding effectiveness.

12. Expanding Regulatory Burden

Amid the pandemic, regulators released new regulations regarding claims reporting, COVID-19 tracking, premium collection and job classifications. Systems had to be modified to collect the latest information, and already stretched resources needed to adjust to fulfill these additional requirements. 

All these regulatory changes were made with little input from stakeholders, and the increased requirements added additional administrative costs for everyone involved, including employers, third-party administrators (TPAs) and carriers. Temporary emergency rules and regulations are continually expanding and show no signs of letting up.

13. Workforce Evolution

Companies have adjusted their approach when addressing performance, productivity and workplace safety after a major shift to work from home in March 2020. Employee engagement and technology were just a few of the many impacts of this shift. Social distancing and office redesign coupled with consistent communication have proven successful for companies that brought their employees back to the office full- or part-time.

For companies opting to continue work from home policies, there are many unanswered questions regarding when to bring employees back. Whether or not employees are comfortable returning, if vaccines will be mandated or even just waiting until the surge subsides are all considerations for a potential return to the office. Regardless of when return to work becomes a viable option, expect the expansion of remote work opportunities post-pandemic.

14. Economic Recovery

The pandemic has caused significant unemployment increases, with lower-wage workers in service industries being affected the most. Brick-and-mortar retailers were already struggling before the pandemic, and 29 major retailers closed more than 10,000 stores nationwide in 2020. Industries like travel and hospitality are not expecting to see 2019 revenues return until at least 2022. Because these industries rely heavily on business travel, there may never be a full return, as companies are reevaluating the necessity of travel expenses.

While government aid packages could be expanded, they are a temporary fix. Ultimately, the economy will not fully recover until we get people back to work, meaning there will need to be widespread vaccine distribution, removal of government restrictions and new job opportunities for permanently displaced employees.

15. Insurance Innovation

New models for claims processing, including automation, will continue to emerge in 2021 and 2022, widening the gap between the innovators and legacy providers. The consumer journey and engagement will begin to evolve in a material way, driving on-demand tools and solutions. With an added emphasis on customer experience, organizations must rethink their design around support models to assist with consumer education, planning, decision-making and coordination of services. 

With the advancement of technology and the emergence of models not offered previously, expect pricing models to be adjusted. Early adopters wanting to engage in new models will help shape the learnings and performance of the innovation and engage in transparent discussions around value and pricing.

See also: 2021, We Can’t Wait to Get Going!

16. Insurance Market Challenges

In 2020, businesses saw significant price increases across multiple lines of coverage and carriers reducing policy limits in an attempt to reduce their exposure to losses that have been both historic and difficult to predict. Reinsurers reported significant price increases for 1/1 renewals with contract language changed to eliminate ambiguity around underwriting intent and reinforce exclusions. Exclusion of pandemic losses from workers’ compensation treaties means carriers will not have reinsurance available for those losses.

Workers’ compensation is the one line of commercial insurance that has been relatively stable in the last year. Due to drops in employer payroll, overall premiums and claims dropped in 2020. Several factors are putting pressure on carriers to adjust pricing, including historically low interest rates that lower carrier investment income and discounting on long-term claim payouts. There are also significant differences between the guaranteed cost market, which is drive by claim frequency, and the retention market, which is driven by claim severity. The costs of catastrophic injury claims has continued to climb at rates well above medical inflation.  

Risk managers should expect more of the same this year. As losses continue to grow in multiple lines of coverage, carriers are trying to find the correct pricing to make these lines profitable. Additionally, coverage gaps are developing as carriers tighten up policy language to avoid unintended claims. For example, many policies and reinsurance contracts added tight exclusions for infectious diseases, excluding coverage for conditions like Legionnaires disease, which had been previously available.

17. Cyber Risks

Deepfake videos, increased phishing and ransomware attacks and more vulnerable remote workforces have all contributed to record cyber threats. Any vulnerabilities could leave an organization open to million-dollar ransoms, data leaks and irreparable reputation damage. As hackers become more sophisticated and organized, it is vital to remain vigilant, and training employees cannot be overlooked.

18. Public Sector Challenges

The economic recession caused by the pandemic resulted in municipalities receiving significantly lower tax revenues from areas like sales tax, hotel taxes and income taxes. The public sector faced increased costs from public health expenses and the costs associated with operating in a pandemic environment. Additionally, civil unrest and riots in larger cities resulted in billions of dollars in public property damage and thousands of injuries to law enforcement officers. 

Law enforcement agencies face additional challenges due to decreased staffing and recruiting and an increase in retirements. Amid all of these obstacles, pensions remain significantly underfunded, and, as retirements accelerate, these pensions could run out. Ultimately, the events of 2020 will increase the costs faced by public entities, which will increase the burden on taxpayers to pay for all these costs.  

19. Lessons on Industry Engagement

In 2020, most conferences evolved to host their first virtual events. While many industry stakeholders have voiced concern with virtual fatigue and are anxious to get back to in-person events, the value of conferences before the pandemic is in question. As companies have adapted to online certifications, prospecting virtually and partnering with clients outside of these events, organizations question the return on investment of these conferences. While there will be a return to in-person events eventually, expect to see smaller booths, fewer attendees and a larger focus on local and regional participation. 

20. Litigation Management

Pandemic restrictions have forced courts across the country to postpone significant portions of their dockets, causing delays in litigation in both workers’ compensation administrative courts and civil litigation. These delays can cause claims exposures to escalate along with administrative costs associated with the litigation. In dealing with these delays, it may be best to be selective about what is litigated. 

To listen to the archive of our complete Issues to Watch webinar, please visit https://www.outfrontideas.com/. Follow @outfrontideas on Twitter and Out Front Ideas with Kimberly and Mark on LinkedIn for more information about coming events and webinars.

After a year during which the U.S. insurance industry had to grapple with the global pandemic, the severe economic downturn and other factors such as political uncertainty, insurance deal activity in 2021 will be robust due to several factors:

• Increasing premium rates and a more optimistic outlook for most lines of business will make stronger market players more likely to look for growth opportunities through acquisitions, some of which may have been put on hold in 2020 due to the pandemic.
• The improving market conditions for insurers is also attracting more capital into the industry, which will help fund more deals. In addition, with interest rates at historic lows, buyers may look to tap cheap debt or deploy funds stored away during the pandemic to fund acquisitions.
• As the economy begins returning to a more stable state in 2021 — presumably after the widespread dissemination of COVID-19 vaccines — insurers will benefit from a reduction in both the regulatory and commercial uncertainty that resulted from the pandemic, which will allow for more focus on longer-term strategy and deal-making.
• For many large insurers and insurance intermediaries, the pandemic demonstrated a need to double down on efforts to adopt innovation into their existing business models and focus on a digital approach to customer experiences. Insurtech businesses were able to help insurers become more digitally focused and access new sources of data, technology and distribution channels despite the challenges of the pandemic. In 2021, insurers will target acquisitions of startups as a means of accessing novel technology platforms and new distribution channels; insurtech startups will be willing to consider being acquired by or partnering with large incumbents after having experienced the uncertainties of the pandemic and due to the need to allow for exits by early investors.

The new year has finally arrived. The holiday greetings that landed in my inbox last month all celebrated turning the page on 2020. The reality is we will continue to live with the effects of last year’s disruptions.

Approaching 2021 as a “recovery” year implies to some degree going back to where we were — and if that is where you put your efforts, you will miss the bigger opportunity, which is to hit the reset button and begin anew. Assume that we are not going back.

New beginnings require believing, thinking, imagining and acting with a new outlook. So, here are seven rules for breaking the rules as you pursue your organization’s reset in ways that might point you to a remarkably better year.

1. Rewrite the Rules for Today's Realities

The orthodoxies that were defined by the way things used to work are out of date. You may find that the rules defining policies, processes, metrics and structures for your business were developed in another time when the bases for assumptions were very different. They may now be outdated and hurting your progress and results.

A healthy question to ask is: “Where did those rules come from?” Be willing to ask this question and open the dialog with colleagues about where change can help the organization. We are in a new space, forced to operate on new terms. Don’t let tight adherence to the old rules become self-imposed constraints on your reset efforts.

2. Revalidate the Problems You Are Trying to Solve

The market has moved. Stakeholders have moved. Customers’ needs have shifted, intensified and been reordered. That means it’s time to make sure that the problems your company’s solutions address are completely aligned with all of these changes.

Are you a solutions-pusher or a problem-solver? The latter will capture more expansive opportunities to serve customers because their focus will naturally be on customer-centric problem statements. Don’t get stuck on your existing solutions. The compelling problems may now be elsewhere.

3. Shift From Talking About Innovation to Taking Action

There is always great interest in talking about innovation. When aspiring founders and intrapreneurs ask me where to begin the journey toward realizing their vision, I always begin with the same feedback: Just start. Do something. There is not an unambiguous rule book. Being in the game experimenting and learning is the best way to advance. Weight your innovation energy heavily toward execution of prototypes and understanding the business model, over sharing presentations and theories.

4. Be Clear on What you Mean by Innovation

Innovation is very easy to theorize about, harder to deliver. It’s a messy journey, one that confounds people whose comfort zone is defined by predictable, linear processes.

"Innovation" is also a word loaded with meaning, ranging from “cool stuff” to hard-working solutions to real problems. Be clear on what innovation means to your organization, how it connects to creating stakeholder value, what customers you want to serve and whose problems you want to solve with innovative answers. Gain alignment with colleagues so you can lock arms on where you want to head.

5. Embrace Uncertainty as Opportunity

Ambiguity, uncertainty and unpredictability are replacing the standards and rules. Acceptance that we will likely be operating in this new environment for some time opens up new possibilities. We are seeing this already in the expansion of home delivery offerings, B2B2C businesses moving to serve consumers directly, new approaches to supply chain management, the rapid growth in telemedicine and countless new digital services offerings.

There will be continued opportunity in the fallout of last year’s events. Within the messiness are massive new problems calling for answers, so shift energy from a focus on maintaining stability — where it may no longer even be possible — to embracing uncertainty as a source of opportunity.

See also: 11 Insurtech Predictions for 2021

6. Reevaluate Where Your Mindset and Skills can Have the Greatest Impact

To adapt quickly enough to new market circumstances, your core business partners may be newly open to engaging with you differently than in the past, tapping into your skill set and mindset to accelerate progress on pressing priorities. For example, there is now widespread focus on reinventing the employee experience, rethinking the configuration of the workplace and accelerating the digital transformation of the customer experience. Where can you dive in and assist where you may not have been viewed in the past as a valuable resource?

Recalculate the mix of short-term versus long-term initiatives on your project list. Are there challenges right now to the core business model that require unconventional solutions? Challenge your assumptions about where on the time horizon resources are being used. Transfer skills — speed, agility, collaboration tools, fit-for-purpose processes — that power new ways of executing. What have you learned this year that can be seeded throughout the business for obvious, tangible impact?

7. Reset Relationships With Your Internal Stakeholders

This is a time to build new partnerships with colleagues and be positioned to exploit what you do best for the benefit of your customers and the health of the business. To figure this out, follow the enduring first rule of marketing: answering “what’s in it for me?” Understand what drives your colleagues rationally and emotionally, how they define success and where, as a result, there are new points of alignment. Go on a listening tour in the organization to find out how stakeholders see the year unfolding, what they are worried about, what their hopes are for the year. Choose partners who already exhibit in their behaviors, actions and decisions the necessary growth-oriented mindset and ways of working.

Even with the new year underway, we will continue to face the challenge of being able to contribute in the midst of rapid transformation, to reshape how we can help customers, support employees and meet business goals. Doing so depends on our own ability to let go of old paradigms that no longer work, and to be willing to be constructive rule-breakers focused on solving the problems people never had before, but are struggling with now.

2020 was a year of accelerated digital transformation in insurance across all lines of business. Major purchases such as life insurance or financial products are increasingly bought and sold online, making the digital customer journey one of the top sales tools in the insurance business.

Effect of the COVID-19 crisis on insurance sales

The COVID-19 crisis had wide-reaching effects across all lines of business. Consumers drove less and, at the same time, shopped around for better deals in auto insurance coverage. Historic mortgage rate lows combined with a trend of fleeing big cities for suburbs, so home insurance sales also skyrocketed this year. When it comes to health, record unemployment and concerns about adequate plan coverage drove most of the insurance buying activity. Coupled with reduced doctor visits, profitability in health plans remained positive, although long-term ramifications are still to be seen.

Life insurance policies faced challenges, including Fed rate cuts and decreased return on carrier investment assets, making profitability a significant challenge. Medical exams became more difficult to complete, and delays and restrictions led to funnel breakage, leading to reduced sales amounts. Because life insurance is not a required policy, it is often the first to evaporate from the consideration set during the economic downturn.

What insurers need to change to succeed in 2021

2021 is the year of ultimate change - and not bad change, but change that will affect the entire insurance organization for the (digital) years to come.

The need to focus on the holistic experience

The way consumers research and buy insurance products has changed. Every interaction with a customer becomes a potential turning point, from a website visit to a call with a customer representative or a visit to an office branch. 

Purchases initiated through digital channels are likely to stay online. According to the J.D. Power 2017 Auto Insurance Study, customers who set up an account online with their insurer are two times as likely to also use an app to submit incident photos. In addition, they are three times more likely to report the first notice of loss online.

Still, most insurers lack a clear plan or holistic digital strategy, so their efforts often result in an incoherent patchwork of digital initiatives. Processes are not digitized end-to-end, and channels are not integrated. As a result, insurance companies’ digital endeavors are often not fully reflected in their top line, let alone their bottom line.

First, insurers must transform their digital channels by mirroring the success of big online retail platforms. Insurance policies that are sold online need to be packaged and priced differently than those that rely on face-to-face sales. 

Second, digital support goes hand-in-hand with sales. Given the complexity of insurance products, even those that are simplified to match the digital world, insurance agents must be armed with effective support tools. Support reps need to be supported with the tools that will help them sell on value and explain to the customers which product best matches their needs, smoothing the pass to up-and cross-selling.

See also: 2021, We Can’t Wait to Get Going!

Prioritizing digital customer journeys

Digital channels have been an important part of the insurance business for many years. But digital always played a supportive role. Today, the digital channel takes center stage, and it needs to be treated as the star of the show.

Instead of rushing to quickly release ad-hoc digital initiatives that do not have synergy with each other, digital leaders must strategically approach digital customer journeys.

The digital customer journey must be smooth, effective and seamless for the customer. Every interaction must be logged for further analysis on the back end, and manual actions must be automated to prevent delays, errors and backlogs. Integration between front-end and back-end technologies is key to achieving end-to-end digital journeys that are up to the challenge.

Empowering agents and brokers to deliver better service

Simply converting a decade-old rates calculator to a digital app will not do the trick. Insurers must support sales and service reps by providing them with all the tools and materials they need, attractively packaged and tailored to the digital world. 

Employee experience is as important as customer experience, as, after all, employees will be the ones guiding customers on their purchase path. 

Self-service, 24/7

The digital world is always on. Having a robust self-service capability that is on 24/7 is one of the requirements nowadays. Consumers are used to getting anything, any time, and expect an immediate reaction to their online actions.

Consumers expect insurers to use the data they already have to improve their experience further. A self-service portal that keeps asking existing customers for the information that the insurer already has elsewhere in their systems is going to cost the insurer its customers.

Automation and personalization of the digital journey are key here. End-to-end digital policy onboarding and claims handling have emerged as a key competency that consumers want and expect. But digital transformation also removes high costs from the onboarding and claims processes by eliminating manual work that used to be required.

Creating digital insurance journeys for 2021

Once you've understood and accepted your points of change, it's time to create the best digital insurance journeys. Here are the benefits that simply cannot be overlooked:

Scalability

Creating a single digital journey is no longer enough. Insurers must focus on automating customer journeys end-to-end, including both the transformation of the front end and back end. 

This requires scalability. Technologies that can amplify existing resources and create repeatable processes that can be implemented across the organization.

Time to market

Traditional enterprise development projects that take anywhere between six and 12 months are no longer fit for the fast-moving pace of the digital world. Agility and time to market are becoming key competitive advantages for digital-first insurers.

Increased efficiency and productivity

Digital is not only about the experience, but it is also about boosting the efficiency and productivity of your employees. Back-end processes that require a lot of manual handling create delays and waste your employee’s time. 

Improved data accuracy

Insurers gather a wealth of data on their customers. However, the access to this data must be democratized, as, currently, it is not accessible to every employee who needs it in an actionable format.

The right technology

Digital technology such as mobile, AI, no-code platforms and IoT plays a key role in a company’s ability to quickly respond to consumer actions or feedback as well as gather data on market conditions. Identifying which technologies are best suited to cater to the demanding digital customer is the key to success in 2021.

See also: 11 Insurtech Predictions for 2021

Insurance in the ‘new normal’

Insurers are faced with a difficult task,. Digitally savvy consumers, fast-moving technologies and the demands for personalization strain internal IT resources to the max. Using the right digital tools is necessary to ensure the ultimate success of the company and of course, the best customer experience out there.

Selling insurance in 2021 isn’t the same.

Insurance carriers have put a lot of resources into optimizing the auto claims process, and they’ve made significant progress. The industry cut the average amount of time it takes to return a repairable vehicle to the customer after the first notice of loss from 13.5 days in 2018 to 12.9 days in 2019, according to J.D. Power, and then to 10.3 days in 2020, though the 2020 gains were at least partially due to fewer cars on the road during the pandemic.  

Many insurers now provide AI-powered claims technology that enables the consumer to report an accident and supply the information needed to settle the claim without ever leaving home. Unfortunately, even with these tools, consumers still take an average of four days to report the accident and another three days to deliver the required images that allow their carrier to use these new AI tools for their claim. That’s seven days of costs -- car rental fees, storage charges, etc. -- and a significant delay in settling the customer’s claim.

Obviously, the vast majority of consumers want to get their cars back in working condition as soon as possible. So what explains these delays?

The primary issue is that motorists are not in the best position to capture accident information. Following an accident, they are often understandably dazed and focused on their health, the health of their passengers, interactions with law enforcement and the shock of the accident. They’re likely not thinking about taking exact photos of the damage to get their insurance company the data they need to start the claim. In the worst-case scenario, the motorist may be injured and completely unable to make a report.

If a vehicle is undrivable, it will likely be towed to a storage lot, and, many times, the claimant may take days to get the insurance company the information it needs to find and recover the vehicle, and also capture the photos needed for the claim. All the delays increase costs.

Likewise, customers may not be technically savvy. While many of us can use mobile app tools with ease, many others may not be able to navigate them without significant prompting. Even if they are able to use the tools, consumers are not experts in accident-scene images or insurance claims, so the photos they send may be incomplete or unusable, again causing further delays and increasing costs.

Enter the Tow Professional

Instead of relying entirely on consumers to self-report, insurers would likely see faster, more accurate reports if they were to partner with tow providers. After all, nearly all insurers now offer roadside assistance to their customers, so insurers will have a partner already on the scene for accidents that render the car undriveable, which are typically the most expensive claims. Plus, tow operators are in a far better position to capture accident scene information than are motorists. They’ve probably already worked hundreds, even thousands of vehicle accidents, so they’ve seen it all before; a tow operator is far more likely to be in a calm state of mind than the motorist. 

Additionally, tow operators work with vehicles and the damage they incur in an accident on a daily basis. The operators already know their way around an accident scene. Plus, as partners, they can be held to certain standards under a contract and required to undergo training to follow a repeatable process. A motorist is under no contractual obligation, will likely be filling out the accident report for the very first time and almost certainly will have never reviewed the process beforehand. And the more accident reports a tow operator files, the better the operator will become at taking proper photos and providing the required information. 

See also: The End of Auto Insurance

Of course, tow operators won’t be at the scene of every accident. If the vehicle is driveable, there’s no need for a tow, and not all customers will opt for the insurers’ roadside assistance program. But for those customers who do sign up, tow operators who are part of the insurer’s network will be on the scene for the most serious and costly accidents. By getting accurate information and photos the same day as the crash, carriers can reduce the amount of time the vehicle stays in storage and accelerate returning it to the customer or providing a settlement if it is totaled. As a result, the carrier not only saves money but increases customer satisfaction.

Tow operators are already on the scene. Insurers should leverage them to provide claims information and provide better outcomes for everyone involved.

Biden’s ‘Reverse Honeymoon’ Paul Carroll, Editor-in-Chief of ITL Although I’d like to think that the big news in the world this week is that my sister Anne turns 60 years old today, I have a feeling that there is considerably more focus on what happens tomorrow at 12:01pm EST, when Donald Trump leaves office and Joe Biden becomes president of the U.S. The tradition is that the new president has a honeymoon of 100 days or so, when his people settle into their roles in the new administration and he starts to implement his agenda. But Biden’s plans to start out with a series of decisive actions suggest more of a divorce from the tone and policies of the Trump administration, and the dysfunction in Washington nearly ensures that Biden faces the obverse of the usual honeymoon. Although I think the longer term is still clear — we will get the virus under control some time in 2021 and see a strong economic recovery, barring some craziness at the inauguration or in coming days — I suspect we will all be left guessing about where the economy and the country stand for at least that first stretch of three months-plus... continue reading > Live Event January 21st | 1:00 PM CT See how NatGen scaled excellence to over 750 agents Register Now SIX THINGS 11 Insurtech Predictions for 2021 by Martha Notaras AI will mean faster, better customer service that is cheaper for the carrier: Automation is a win-win with unstoppable momentum. Read More 2021, We Can’t Wait to Get Going! by Nigel Walsh The change we have seen is acceleration, not true change. We, like many industries, are doing the same things in a digital way. Read More How Low-Code Accelerates Change by Richard Barbarino Here are three tangible ways that low-code programming lets carriers accelerate change and provide new benefits to customers. Read More The Insurer’s Customer Acquisition Playbook Sponsored by Data Axle The question for insurers is how they want to address a growing desire by small businesses to purchase online. Read More COVID-19 Risk and Buyers’ Psychology by Peter Hovard Studies of how the public perceives the pandemic's risks can help insurers understand consumer mindsets and needs. Read More The ‘B’ Word: Bankruptcy and D&O by Carrie Oneil Although litigation against a firm is stayed in bankruptcy, suits against individuals are typically not. D&O insurance is the last line of defense. Read More Has Pandemic Shifted Arc of Insurtech? by Mark Breading Have events of 2020 permanently altered the trajectory of the insurtech movement and thrown predictions out the window? Read More MORE FROM ITL The Future of Blockchain Series Episode 2: Usage in Commercial Lines Complimentary On Demand Webinar Blockchain has incredible potential to streamline business functions and open up opportunities for a wide range of innovations Watch Now January's Topic: Commercial Insurance Much of the focus on innovation has related to personal lines and that makes some sense: Policies tend to be more cookie-cutter than in commercial lines, and individuals, spoiled by online resources like Amazon, have demanded a better experience from insurers.  But don’t sleep on commercial lines. As businesses see what’s changing in personal lines, they aren’t going to be left behind. Businesses are demanding simpler interactions and more understandable policies, as well as better prices. Take Me There GET INVOLVED Write for Us Our authors are what set Insurance Thought Leadership apart. Get Started Partner with Us We’d love to talk to you about how we can improve your marketing ROI. Learn More SPREAD THE WORD Share Share Tweet SUBSCRIBE TO SIX THINGS

With the passage of the California Privacy Rights Act (CPRA), U.S. data privacy law entered a new era. In addition to establishing the first data protection enforcement agency in the U.S., the CPRA ushers in several stringent requirements for insurers and their service providers and is likely to serve as a model for other states considering similar legislation. As we head into 2021, your business should be on notice that data privacy requirements are about to get a lot tougher and ensure that your service providers have put the appropriate safeguards in place to protect your personal information.

While laws like the CPRA require insurers to protect sensitive data, they often give businesses little guidance on how to secure the information systems that process that data. If your business is wrestling with the growing patchwork of data privacy and security requirements, selecting service providers that have certified against an industry-recognized security framework like HITRUST CSF can help you streamline your compliance efforts while providing powerful validation that your service providers have implemented industry standard security programs and best practices.

HITRUST CSF – Not just for healthcare anymore

When vetting service providers, looking at their security certifications is an important starting point. However, not all security certifications are created equal, and relevance will vary depending on your industry and location. In terms of scope, HITRUST CSF offers one of the most comprehensive certifications available. The Common Security Framework consists of 270 requirements spread across 19 domains ranging from access controls and business continuity to risk management and data protection and privacy. Although HITRUST CSF was originally developed to help healthcare organizations address the security requirements of the HIPAA Security Rule, the framework has now been aligned with the controls of other industry standard cybersecurity frameworks, making it an elite certification across multiple industries — like P&C and life insurance — around the globe.

The broad-based appeal of HITRUST CSF is due in large part to its “assess once, report many” approach to certification. HITRUST CSF draws on multiple security frameworks, including ISO 27001, PCI DSS, NIST 800-53 and the NIST Cyber Security Framework. Because so many HITRUST CSF controls align with those of other security frameworks, certification against HITRUST CSF helps businesses comply with a wide range of security and privacy frameworks while streamlining the assessment process. 

Getting certified – What’s involved?

In terms of getting certified, HITRUST CSF offers one of the most rigorous assessments available. Organizations begin the certification process by engaging an external auditor approved by HITRUST to perform a validated assessment. More than other certifications, HITRUST CSF also stresses the importance of developing and implementing the appropriate policies and procedures to safeguard covered information. This combined emphasis on program development and independent third-party assessment place HITRUST CSF in a league of its own when it comes to validating your program to customers concerned about the security of their data.

Once organizations do achieve HITRUST CSF certification, they must demonstrate continuing commitment to data privacy and security through annual assessments. In addition to the biannual validated assessment, organizations must complete an interim assessment that is more limited in scope during intervening years. This annual review cycle ensures that service providers engage in continuous monitoring and improvement of data security and privacy rather than adopting a “one and done” approach to compliance. 

See also: Navigating Security in the Remote Paradigm

One size does not fit all – Which certifications should your service providers carry?

While HITRUST CSF is intended to harmonize requirements across several security and privacy frameworks and legal requirements, many service providers find it useful to maintain multiple certifications. These certifications represent some of the most widely recognized options available to businesses that process sensitive information:

• PCI DSS – Companies that process credit card transactions should maintain PCI DSS certification, which is overseen by the Payment Card Industry Security Standards Council (PCI SSC). PCI DSS certification requires businesses to meet stringent requirements and engage in continuous monitoring throughout the year. Requirements address seven critical security controls, including change management processes. Other requirements include biannual penetration testing of internal and external networks by an independent third party, as well as quarterly vulnerability scanning of your organization’s information systems.
• ISO 9001 & 27001 – The International Organization for Standardization (ISO) publishes international standards that address best practices for a wide range of industries and applications. ISO 9001 is a formal Quality Management Program developed by the USPS and major mailers specifically for the mailing industry. The widely known ISO 27001 standard provides requirements for establishing and maintaining an information security management system (ISMS). While organizations can certify against ISO 27001, it is not obligatory, and many organizations choose to address ISO 27001 requirements without pursuing formal certification.
• SOC 2 Reporting is not a certification, per se. Rather, it is a report that requires organizations to attest to five Trust Services Criteria: Security, Availability, Confidentiality, Privacy and Processing Integrity. SOC 2 reports are widely accepted across many industries and can be done in conjunction with security certifications. For example, some organizations choose to obtain a SOC 2 report based on HITRUST CSF control requirements.
• FISMA – The Federal Information Security Management Act (FISMA) is a United States federal law that requires federal agencies and contractors to develop, document and implement an information security and protection program. FISMA certification demonstrates compliance with NIST 800-53 Baseline Security Controls for Federal Information Systems and Organizations. Requirements include maintaining an up-to-date system inventory, data categorization, selection and implementation of NIST security controls, development of a System Security Plan, continuous monitoring and conducting annual risk assessments.
• USPS Platinum Full-Service Certification – Platinum Full-Service Certification is reserved for mailers who consistently meet USPS mail quality thresholds, have a formal Quality Management Program and pass an internal audit and an independent external audit by a certified Quality Auditor. Only a handful of mailing service providers in the U.S. have achieved USPS Platinum Full-Service Certification. Thus, any vendor that maintains this certification is in select company.

See also: Data Security to Be Found in the Cloud

As more states enact tough data protection legislation, validating the security of your service providers will become increasingly vital. Moreover, while it’s never too late to make a good impression, it can be really tough to earn back the lost trust of your customers following a data breach. Verifying that your service providers maintain rigorous, relevant, industry-recognized certifications is one of the most important steps you can take to protect your data and inspire the confidence of your customers.

Roughly a third of the population of South Africa live in informal dwellings in settlements and rural villages. Many of these are shacks, costing less than 5,000 rand to build. That's the equivalent of around 300 euros. These homes may not figure on a land registry or have a certificate of building quality, but they are family homes nonetheless, providing an essential roof over heads and a safe place to store everything the family owns.

This situation occurs across many parts of the developing world. According to the United Nations, over 1 billion people live in informal settlements around the globe. For the people living, working and raising their families in these conditions, insurance protection is out of the question. Until now.

Enter Ntando Kubheka, an entrepreneur with a passion to make a difference in the world. Ntando is the CEO and founder of Sugar, a start-up insurer in South Africa, who is on a mission to make home insurance accessible to those who need it the most.

To find out more about this young and ambitious start-up called Sugar, I Zoomed with Ntando.

What is the problem Sugar is addressing?

Ntando told me, "The problem we are solving, quite simply, is the provision of insurance protection for the mass market. This is the bottom of the pyramid when it comes to demographics. Our focus is on home insurance because the traditional insurers don't want to insure homes that are in informal settlements, in rural villages or are homes in township areas."

The point here is that this sizeable chunk of the world's population needs a financial safety net more than most. If their home goes up in flames, then everything they possess goes with it. With no stash of cash to fall back on, they become totally dependent on the good will of nongovernment organizations (NGOs), the community and the church.

And it's not just a question of money alone, although, by definition, this is a low-income group. There is also an issue of supply. The insurance products to fit these types of homes are simply not there.

So, how is it that Ntando can do what the traditional insurers won't?

Redefining a home

Ntando explained,"There are three issues we have had to deal with for our home insurance products on Sugar. The first is that there are no formal addresses to identify a home. The second is that, even if it is a bricks and mortar building, it won’t be built by a registered builder who has a license with a national agency. And, finally, there will be no formal documentation, such as a certificate of occupancy from the local authority, or building regulations or a land registry record. These are informal dwellings that people have built where they want to build them."

When you think of it like that, it is blindingly obvious why a traditional insurance product would fall at the first hurdle. There's no record of where the house is, how it's been made, what it's been made of and to what standard it has been built. The issue for insurers is, how do they assess risk when there is no address, or standard description of how the home is built or any certification to demonstrate the quality of the construction?

This is why the purpose of Sugar is to build an insurance product for people who live in homes like these.

Technology to the rescue!

It was about now in the conversation with Ntando that I had one of those aha moments. It came when I asked him how you find anyone when the person is living without a street address. I was thinking of the trouble I have with couriers and the "I can’t find your house" call I seem to get with every delivery. Which is particularly challenging for me as I live in southern Spain but speak un poco de español!

It had never occurred to me how you find someone when there isn't a system of road names and numbers to rely on.

The answer is simple: The person sends you a WhatsApp locator! The perfect fusion of the analog and digital worlds.

But it gets better: Sugar has built a platform using proprietary technology similar to What3Words to provide a location point for every dwelling. For those unfamiliar with What3Words, it is a global addressing system that does not use street names or GPS locations.

Instead, What3Words has divided the entire planet into a grid of 57 trillion squares that measure three meters by three meters. Each square is given a unique combination of three words to identify it. This system provides greater accuracy for identifying locations and is remarkably easy to use. Words are easier to remember than a GPS location; it always works offline; and it is more precise than saying, "Meet me outside Oxford Street tube station!"

How is Sugar doing it?

Sugar scans and remaps the country every six months with its in-house spatial platform to keep the core platform up to date. Sugar can put a pin in the map and locate every one of its customers.

Customer onboarding is entirely automated and driven by a conversational, AI-enabled chatbot. It typically takes 10 minutes for a new customer to go through the entire process of inquiry, quotation and buying a policy. The experience is specifically designed to be conversational in a choice of 11 languages (not everyone speaks some English).

As part of the onboarding process, customers take photos of the four elevations of their dwelling. Sugar takes the four images and strips out the metadata of each one, such as the location data, timestamps, etc. Sugar then compares the images with its own datasets to validate the photos against what it already knows about the dwelling.

Which all sounds great, but what about valuation and the setting of the premium? Ntando explained, "When it comes to valuing the property, we leave that to the customer. We ask them to assign the value that they think is sufficient to cover the rebuild cost of the property and the value of its contents. If they over- or underestimate, well, it is what it is. They make that choice for themselves."

See also: 11 Insurtech Predictions for 2021

Insurance claims - the moment of truth

"When it comes to settling claims," Ntando said, "we send out an assessor for bricks and mortar property claims to view the damage and assess the loss. But for the Shack product, we pay out the full amount on every claim. We deliberately made this a pre-paid product for a fixed amount, say 5,000 or 10,000 rand. This is unique in our marketplace to have an insurance product like this."

One of the smart moves Ntando has made with Sugar to minimize the risk of fraudulent claims is to enter into a series of partnerships with retailers and do-it-yourself (DIY) stores. When a claim is paid, it is usually in the form of vouchers or a pre-paid card to spend at a store, and not in cash. This discourages anyone from seeing an easy route to cashing in their total loss policy when they know they'll be paid out in timber and nails!

Bringing insurance to the masses

Sugar is about to complete its first round of seed funding. The tech platform is built and already serving customers. The underwriting capacity is in place with Genric Insurance, backed up with reinsurance from GenRe.

This newly raised capital will fund growth in distribution as Ntando goes on his mission of educating the people of South Africa on the value of insurance to people who have little or nothing to fall back on.

Social impact!

Afterward, when the Zoom was over and I was reflecting on the call with Ntando from the safety and comfort of my riverside dwelling, I had one overwhelming thought. The social impact of providing financial protection to those who need it the most makes Sugar more than just an insurance company.

And for that, I wish Ntando and Sugar the very best of luck and good fortune for the future!