After three intense and exhausting days at InsureTech Connect last week, I’m a little conflicted. It was quite exciting. And there are many fascinating companies and ideas that are truly transforming our industry. But then King Solomon’s words (from the Bible) come to mind – “There is nothing new under the sun.”

I don’t mean to express negative sentiment regarding the state of insurtech and innovation in insurance. Virtually everyone is talking about AI/machine learning. Digital transformation is high on the list of activities and discussions. New options for distribution, the evolution of ecosystems and the continuing progress of the new era of computing are compelling topics. And the potential and progress of transformational technologies like the IoT, autonomous vehicles and wearables fueling But I still wonder whether I saw anything fundamentally new at ITC or whether we are just seeing increasing maturity in the insurtech movement.

There were a few announcements and companies that raised some eyebrows, to say the least. Here is my list of those that the industry should take note of:

1. USAA and Google partnership. These companies have collaborated to create computing visioning/machine learning capabilities for auto vehicle damage assessment. As far as I know, this is the first instance of Google actually developing or co-developing a purpose-built insurance solution. Sure, the company tried Google Compare and has invested in Applied Systems. But this is a case of Google leveraging its deep machine learning capabilities to provide a capability specific to insurance.
2. Mitchell/Qualcomm smart glasses. Augmented reality for use by repairers at auto collision repair facilities is a very cool solution from two well-established, incumbent tech companies, demonstrating that there is substantial innovation coming from these corners (in addition to the startups).
3. The spread of great use cases. Although not new, we are seeing many examples of innovative uses of machine learning, aerial imagery, the IoT, new digital brands, interesting products and more. In past years, there might be one or two examples to cite in a particular line of business or business area, but now there are many insurtechs, incumbent tech companies and insurers that can cite multiple examples of business value delivered.

See also: Can Insurtech Reach Escape Velocity?  

So, I suppose any evaluation depends on your definition of “new.” I prefer to think of our progress as the evolution and maturity of ideas and technology solutions that have been around for a while. But now they are real. And that is a great thing for the industry.

The last few years have been revolutionary for insurance in some ways, but based on the trajectory that I am seeing at ITC and elsewhere, there is tremendous innovation and transformation yet to come. This industry is likely to look quite different a decade from now.

Insurers have a right to air their opinions. Insurers have the freedom to advance their opinions—to advertise their opinions—and criticize hospitals for rising healthcare costs. But insurers should not disguise their opinions with the veil of impartiality, as if they don't have a commercial interest involving healthcare reform. What should be obvious to readers, what is obvious to readers of this site, is less obvious to visitors of other sites; because what people see elsewhere looks more like a newsletter than an ad or a paid piece of advocacy; because insurers risk compromising their credibility by applying a cosmetic touch to a complex issue, one that is a touchstone—more like a lightning rod—for debate, possibly civil; disagreement, probably contentious; and division, definitely passionate and uncivil. If insurers want to avoid that scenario, and they would be wise to do so, they should say what they mean instead of saying what they want in a misleading way: News is for newsletters, and opinions belong on the editorial page. To breach the wall between the two, to pretend to respect the wall while trying to dismantle it, to weaken the wall while claiming to sponsor it, while running sponsorships that look like acts of reporting but read like a call to action—to do these things is to impeach the reputation of the insurance industry. I write these words out of concern for the insurance industry. I write these words to caution insurers, not condemn them, because my concern is for the honor and integrity of the industry as a whole. We cannot afford a loss of confidence—a vote of no confidence—toward an industry of such size and significance. We cannot afford to aggravate an already cynical public by having insurers harm themselves, unintentionally or not; it is difficult if not impossible to regain the trust of consumers. Remember, too, that clarity is better than agreement. That is to say, it is better to state an opinion; it is better to clarify an opinion; it is better to emphasize a point of distinction, to express a point of view—in plain language—than it is to cheapen the currency of communication. See also: Important Perspective for Insurance Agents   More to the point, we cannot afford to further devalue the power of words. Not when we suffer from a poverty of trust. Not when we suffer from a wealth of inflated words and lackluster deeds, from a lack of action by people in positions of trust. Not when we do not trust what leaders say or do. May the insurance industry accept my words with the openness by which I offer them. May insurers accept my advice instead of attempting to avoid it, because criticism is unfair—criticism of hospitals is unjust—when news about hospitals reads like commentary against hospitals. For the sake of insurers, may candor prevail. For the sake of everyone, may clarity be the prevailing idea that governs the writing and publication of newsletters.

Many brokers take a generalized approach to their business. In a competitive field, the thinking goes, it’s best to be able to cover as many industries as possible. However, this line of thinking may be doing more harm than good, as specializing can in fact greatly improve business as a broker. Specializing within one industry may provide a number of benefits for a broker’s sales and marketing tactics, such as internal development of expertise on certain products and gaining a reputation for niche knowledge. Sales and marketing Clients increasingly expect tailored services across industries, and businesses are responding. A 2016 McKinsey survey found 46% of businesses surveyed said most accounts are managed by individuals focused on a specific industry. By 2021, respondents said they expect that number to climb to 66%. When insurance agencies or independent brokers specialize, they’re able to market specifically to what needs exist, based on first-hand observations, and tailor sales tactics to what they know to be most important to the industry. Catering to clients’ needs in this way builds key relationships. For example, if a broker specializes in insuring cannabis businesses, people will get to know the broker by face and name at industry events, and the broker will become ingrained in the industry. Product expertise In addition to gaining more clients through word-of-mouth recommendations, insurance professionals who specialize in a given industry will be able to develop product expertise. Knowing the ins and outs of an industry is essential to speak with authority. This establishes credibility, and speeds up workflow and productivity. Doing something for the first time takes time, but, by the 10th time around, you’re able to do almost anything more quickly. And the more quickly you move -- from getting new business and renewal applications completed to building relationships with specific carriers and underwriters -- the more clients you can work into your roster. See also: Agents, Brokers Are Dead? Not So Fast!   Insuring a manufacturer is different than insuring restaurants, which is different than insuring the cannabis industry. Brokers learn that a cannabis distributor needs fire coverage and theft coverage, while a manufacturer needs stronger protection against physical damages to equipment and employee injuries on the job. Finding a niche If a particular business operates largely in the region where you live, you may want to specialize there. Or, if you find yourself better able to connect with clients in certain industries, you can put yourself in contact with those people more often. Different industries have different events, people and methods of operation. You are likely to enjoy certain types of events more than others, whether those are meetups, large networking events or smaller gatherings. If, in addition to talking about insurance, you enjoy talking about tech, small business or law, you can combine outside interests with your work in insurance. You’ll be able to cultivate relationships by showing you’re interested in potential clients’ fields. You'll be able to make those human connections that people value so much. Find a niche, and you’ll be able to talk about the latest news, particular pain points and exciting developments that clients are looking forward to implementing. Potential clients will remember you for being able to talk about more than just insurance policies and not rushing to the sale. See also: How to Keep Humanity in Online Sales   Operating as a specialist as opposed to a generalist gives independent brokers and agencies opportunities to improve business. Streamlining marketing techniques, gaining product expertise and finding a niche, you’ll become an expert, develop stronger client relationships, improve workflow and build your client base.

The best description of last week's InsureTech Connect extravaganza in Las Vegas may have come from an acquaintance who said, "ITC began three years ago as Craiglist, became Tinder and is now something like LinkedIn."

The reference to ITC-as-Tinder may be a bit spicy, but I think he pretty well captured the arc of the conference as it moved from 1,500 attendees in the first instantiation, in 2016, to the 7,000 souls there last week. ITC began in a sort of "help wanted" mode, evolved into a matchmaker for insurtechs and incumbents and now has established itself as a pretty polished hub for those who want to connect about innovation in insurance.

The shift suggests that the industry as a whole is making progress, and I think I saw that on the floor and in my meetings. But don't take my word for it. Hear from Guy Fraker, our chief innovation officer, who was in the thick of things more than I was, including as moderator of a panel discussion. Here are Guy's observations about industry themes, the most interesting companies he saw and the best advice from his panel:

"The overall quality of innovation in the industry has empirically improved. This year, when a carrier approached me [Me: Conferences are a great place to get free advice from Guy.], it was with a specific issue. 'How do I get unstuck?' 'How do we do this one thing?' In past years at ITC, the carriers would say, 'I'm not sure about this whole innovation thing. Is insurtech going to go anywhere?'

"My biggest concern is that we still have too few companies looking at all this through the lens of the customer. They think about making more money, being more efficient and improving distribution. But they really need to figure out how to become a company that they'd personally like to do business with. [Me: I'd add that carriers still seem to be ignoring some low-hanging fruit even on the efficiency side. An executive told me he thinks that 80% of payments to customers are still made via paper check—a great way to inconvenience customers while inflating costs.]

"The quality of the early-stage companies is definitely higher. They're more seasoned. They have a deeper understanding of the industry. There are a lot of startups with good specs for products. 

"One of the most interesting companies I visited with was Plnar, which lets you use your phone to take a short video of a room and then calculates all the dimensions. The scary but potentially really powerful part is that the video captures all your stuff, which Google and Amazon would be more than happy to use optical recognition to sort through, giving them massive amounts of data on who owns what where.

"There's also no way to ignore the miles-ahead position that Tim Attia has put Slice in as a legitimate go-to-market engine for carriers that want to introduce products quickly.

"We could use something similar for startups. But there is a new trend that may help: tech brokers. They don't have a physical incubator, and they don't invest money like venture capitalists, but they vet companies in person and then go try to find a match, whether an acquirer, a partner, an investor or customers. Kobi Bendelak is certainly doing that at InsurTech Israel for startups there, and others are popping up. There's even a new group in Brooklyn.

"Here's the one thing that hasn't changed: At ITC, as at all the other conferences where I speak, everybody hates Lemonade. Everybody. They must really be on to something."

Cheers,

Paul Carroll
Editor-in-Chief

For insurers to most effectively understand flood risk, they must have access to data that provides a full picture of the hazard, including the different flood types that might affect a property: fluvial, pluvial and storm surge. Although it may seem that flood is just flood, different types can produce various impacts on a property, causing different levels of damage. Fluvial, pluvial and storm surge: Why it matters Much of the U.S. is prone to both fluvial flooding (when rivers overtop their banks) and pluvial flooding (when water accumulates across the surface of the ground as a result of heavy rainfall). However, many coastal regions also experience storm surge flooding, which is a result of increased sea levels caused by weather events. Storm surge flooding is extremely damaging due to the salinity of the water, while pluvial flooding is typically cleaner and quick to recede, likely resulting in lower-cost claims. Without a view of these different drivers of flooding, insurers cannot understand the full exposure to their portfolios or fully engage with the private flood insurance market. Use case: Jacksonville, Fla. The need to understand all the drivers of flood can be illustrated using a residential property on 2nd Avenue, Jacksonville, Fla. Jacksonville is one of the five most vulnerable cities to hurricanes on the U.S. East Coast and at high risk from flooding, experiencing widespread storm surges and flooding during hurricanes Irma and Matthew. The residential property shown in Figure 1 originally fell into a FEMA Zone X (designated as minimal flood risk). Figure 1: Contains data from the FEMA National Flood Hazard Layer. However, when we look at its location on the JBA flood map, we can see some differences in analysis. The JBA flood map identifies this location as at very severe risk to flood (Figure 2, below), from both fluvial and storm surge flooding, whereas using FEMA data alone would not account for either flood type or differentiate between fluvial and pluvial flood. Accessing data sources in addition to FEMA helps provide a more comprehensive understanding of the risk. Figure 2 The complex interplay between flood types The risk is particularly high for hurricane-prone areas like Jacksonville, where storm surges often coincide with inland flooding. It’s important to represent this complex interplay during the mapping process instead of tackling each flood type separately. JBA’s storm surge mapping has been developed in partnership with leading hurricane modelers Applied Research Associates, ensuring that hurricane activity is fully accounted for. Additionally, surge data has been used to modify JBA’s inland flood mapping process to reflect the fact that, during a hurricane, rivers can’t flow out to sea as they can in normal conditions. Flood waters then back up, exacerbating fluvial flooding. For insurers to obtain a complete understanding of the hazard, flood maps must fully represent this relationship. Even with FEMA recently re-mapping the area as a FEMA A Zone, demonstrating that the area is at risk to flood, the drivers of the flood are not clear. As such, underwriting against the FEMA map alone could misrepresent the insurance coverage required. See also: FEMA Flood Maps Aren’t Good Enough   It’s clear that having a view of the different drivers of flood risk is vital for effectively understanding and underwriting the risk, especially in areas where hurricanes can be a major source of flood-driven losses.

Independent insurance agencies (along with carriers, brokers and other insurance firms) are going through digital transformations. They’re moving from (or trying to move from) a paper-based, process-focused insurance experience to a technology-driven, customer-facing insurance experience. We know the reasons:

• Demands by customers for a digital insurance experience.
• Agency need for greater ease of doing business.
• Competitive pressure to increase speed and accuracy.
• Carrier demands for greater productivity.
• Massive insurtech investments targeted to reinvent distribution, underwriting or claims.
• An emerging workforce that was raised on digital (not paper) experiences.

You could add to this list. But the key question is: Can there be a lasting digital transformation without an education strategy to support it? We hear discussions about digital transformation around water coolers and from convention stages. A digital transformation of customer experience and financial performance can make or break agencies, brokers and carriers alike. I’d like to take on several questions related to learning and digital transformations. I am passionate about education and firmly believe it will be the differentiator among insurance firms navigating a massive wave of technological change: Is it possible to create a learning culture while in the throes of transforming the operations and workflows of an agency to a digital platform? To be effective in the long term, insurance leaders must create a culture of learning. Education is the most effective tool to help a firm and its people adapt and improve. In fact, a transformation is the perfect time to commit to a learning culture. Creating an environment in which learning is valued and individuals are supported as they master new skills is a sure-fire route to success, both for the organization and the employees. Leaders must commit to helping their teams learn new skills to succeed. In my experience working for a national member organization of technology users, I see, time and again, successful change happening when learning and developing new skills are the standard. See also: 3 Phases to Digital Transformation   How can leaders empower their employees in the midst of a digital transformation? Employees must first be included in the transformation process —starting at conception and continuing to completion. Successful organizational leadership involves key team members in every step of decision-making. Gone are the days when the boss buys software, then presents the office manager with the manual and the command to make it work. Instead, when leaders partner with key employees early in the process, the team can look for roadblocks and challenges — and minimize their impact. No change comes without conflict. But waiting to confront challenges doesn’t make them easier to overcome: Instead of saving time by involving staff early, you’ve guaranteed chaos when the time comes to introduce the concept. That chaos saps the excitement and energy that should surround a new opportunity and replaces them with angst. Leaders need to clearly communicate the rationale for the change — to help everyone understand why, for example, the new software is needed, how it can improve daily workflows and how it can create a better customer experience. Then, it’s vital to find out what is most important to each team member affected and give him or her information to understand and embrace the solution. And while there might be doubters, naturally, there also will be raving fans among staff. These individuals can rally others to put forth the needed effort. Often, the biggest critic at the outset — if engaged in the process — turns out to be the most enthusiastic cheerleader. And finally, leaders must acknowledge that change takes time. The “factory” can’t be shut down while a process is retooled. The learning, adopting and adapting must take place simultaneously with delivering on the agency’s promise to its clients. Can a more digital work environment (in terms of workflows) actually create opportunities for greater education and knowledge? Having a digital work environment means that barriers disappear or are minimized. The cloud is a great equalizer. No longer is information accessible only to those who know what file drawer it’s in. It’s out there ready to be consumed by anyone who needs it and has the authority to access it. A huge benefit of a digital work environment is the ability to create a knowledge base of agency best practices and workflows — a learning tool that can be a big asset. With such a knowledge base, no matter where or when a firm’s employees work, they have access to the information they need to do their job for the agency and client. This just-in-time knowledge for the task at hand is invaluable not only for learning but for customer experience. What’s more, the inevitable updates are simple — changing a shared resource means the organization is always working from the most up-to-date version of training and reference resources. Also valuable is third-party information such as online help from technology and service providers, often via keyword search. When so many insurance firms are going through transformations, does the firm with a learning culture have a competitive advantage? We cannot expect changes in technology to slow, so it’s imperative to have an information-sharing practice that works across systems, divisions and roles. Yes, there’s a competitive advantage to having a learning culture in an insurance firm, especially when so many insurance firms are going through transformations. A workplace that is easy — and even fun — and that lets workers give input and take risks surely holds more appeal for job seekers. It’s not just hiring, though, that’s affected by a learning culture. Being agile and informed is a competitive advantage for any insurance organization — not only for leveraging technology but also for having the freedom and confidence to habitually peer over the horizon for what’s next. By being able to spin up a new software or business process quickly, your firm is already way ahead of a competitor that takes a wait-and-see approach. Being first isn’t easy. But it does create a window where the competition isn’t. If your staff is already looking for the next big challenge and has confidence in their ability to adopt without sacrificing legacy promises, you’re light years ahead of everyone else. Many people in the insurance industry take pride in their credentials — and they might perceive that those credentials (and their experience) aren’t as relevant in a digital environment, where technology skills might be more front-of-mind. How can an insurance leader deal with how this might affect morale? A successfully implemented digital environment creates space in which work happens effectively. Without the knowledge gained through our industry credential programs, all you have is a technology shell. Without the knowledge of insurance pros defined by the credentials, the digital resource is useless. As an aside: Our industry’s credential process needs an overhaul, too. The industry platforms on which most learning is built are anything but leading-edge, and they’re due for a digital transformation. Too many don’t require continuing education, and those that do — with few exceptions — are lax in assessing whether the individual is maintaining current knowledge. Predict the insurance curriculum of the future. How will it be different? In my view, successful insurance learning experiences will be:

• Easy to access.
• Delivered just in time.
• Taken in small bites.
• Interactive and collaborative.
• Leading to innovation.
• Platform-agnostic.
• Built for an adult learner.

On the other hand, we’ll see fewer:

• Feature-based presentations.
• Long webinars or recordings.
• Topics that aren’t tied to business outcomes.
• Programs designed to check a box rather than advance real learning.

What insurance skills might need to be created or developed for a digital transformation? Insurance professionals with tech savvy will be in high demand. Their skills will enhance workplace efficiency, for sure. But these individuals also will play a key role in developing consultative sales and service approaches as clients and prospects face similar transformations in their business and personal environments. As businesses retool their approach to technology and work to gain the competitive advantage that leading-edge implementation will afford, it’s likely new employees will already have exposure to those emerging technologies. But to help them start their insurance knowledge journey, training and development professionals will be in high demand, What management or leadership skills will be needed for a digital transformation? Business operations, human resources and training are all affected by the speed of adoption required for digital transformation. The ability to develop a strategy that aligns with business goals for growth and efficiency will be essential. Gone are the days of incremental software updates and break-fix approaches to technology and processes. A leader who can see over the horizon and inspire the commitment needed to tackle sweeping change will be a game changer. Hiring individuals already experienced in a digital environment is key to growth. See also: Culture Side of Digital Transformation   Training is the passport for insurance firm leadership and the workforce. Having a plan and good people is only part of the equation. We must be able to guide employees through a learning journey that is formed by just the right amount of support, flexibility and challenge to keep everyone engaged and convicted about the bright future. No matter how important technology is, people are still the center of our industry. As we continue to experience unprecedented attrition of veteran insurance professionals, we must find a way to engage with those just beginning their careers. We must be willing to embrace our differences and give folks the freedom to do more of what they are good at. And we must let go of what worked in the past. The independent agent channel can surge ahead through the effective use of new technologies. We just have to get out of our own way. The future is bright, although a little scary. But what we can’t see or understand today should not stand in the way of marching ahead.

How close are self-driving vehicles to truly becoming a reality? The answer depends on who is being asked. Automotive manufacturers may sheepishly respond with “longer than we proclaimed,” as the initial 2020-2022 predictions give way to timing that is now being held closer to the chest, according to the 2019 J.D. Power Mobility Confidence Index Study. However, this critical—albeit possibly humbling—realization brings to light the intersection of the fantasy vehicles played out on-screen in sci-fi movies and TV shows, and the complexities of the technology necessary to safely maneuver real-world vehicles on public roads in all environmental conditions. Many consumers who had long dreamed of these fantasy vehicles have since pumped the brakes. Why? Tech failures/errors (71%), risk of vehicle being hacked (57%) and legal liability as a result of a collision (55%) are consumers’ top concerns that were uncovered in the J.D. Power study. As consumers begin to experience first-hand the integral technologies that make self-driving vehicles possible, many believe it will likely be more than a decade before they become a mainstay on public roadways. Ultimately, one thing both groups agree on is this: Turning dream cars into real cars isn’t simple. Effects of Real-World Elements on Self-Driving Vehicles Automakers are put to the test when introducing safety technology in real-world situations. Sure, a vehicle will stop or swerve when it’s supposed to on a closed course, but what about on the road with other vehicles? Recently, a Tesla Model S crash occurred when the driver had Autopilot engaged and the car hit the back of a fire truck stopped in a high occupancy vehicle (HOV) lane. The safety system is designed to temporarily ignore stationary objects in the roadway to reduce “false alarms,” but, according to one of the many findings of the resulting National Transportation Safety Board (NTSB) report, the fire truck was no false alarm. Even though the name of the technology may imply the vehicle will handle itself in any situation, it’s still imperative for the driver (or operator) to pay attention and take control if necessary, regardless of successful experience with the system’s performance in more ideal situations. See also: How to Prepare for Self-Driving Cars   Consumer Trust and Acceptance Needed for Adoption of Self-Driving Vehicles No manufacturer has a ready-for-purchase, self-driving vehicle available today. The safety technology in 2019/2020 model-year vehicles is what the industry calls Advanced Driver Assistance Systems (ADAS). These include features like adaptive cruise control, forward collision warning, lane-keeping assistance systems and automatic parking, to name a few. Although truly automated features are not yet available, the driver must remain engaged regardless of what safety system is activated, even if his or her feet are off the pedals and hands are off the steering wheel. Unfortunately, consumers don’t seem to fully understand this, which will hurt future acceptance of self-driving vehicles, as crashes occur that are caused by misunderstanding of systems. ADAS features—the building blocks for full vehicle automation—are designed to notify the driver of situations that may lead to a collision and step in if the driver fails to act. Roughly 60% of new vehicles sold today are equipped with some or all of these technologies, which the National Highway Traffic Safety Administration (NHTSA) says could reduce crashes and save thousands of lives. However, many drivers have deemed some ADAS alerts so annoying or bothersome that they disable them. Nearly one-fourth (23%) of customers with lane-keeping and centering systems—one of the most prevalent safety technologies on the road today—fall into this category, with 61% sometimes disabling the system and possibly trying to avoid them on future vehicle purchases, according to the 2019 J.D. Power Tech Experience Index Study. Consumers who are concerned about cars being able to drive themselves want more information about these complex systems, as well as more channels to learn how to use them or how and why they kick in. Dealers remain one of the main partners to educate consumers about what these technologies bring to the table and help consumers trust that systems are going to kick in when they’re supposed to, as well as understand when they’re working properly. The Cost of Repairing Safety Technology Automakers have developed incredibly rigorous standards of research and development, testing and manufacturing to ensure these technologies work reliably. However, the same cannot be said of the automotive service and repair shops we depend upon to safely fix the 13 million vehicles involved in a collision each year. There is no clear way for consumers to know the ADAS features in their vehicle have been properly repaired following a collision even though they may receive a report or invoice stating this to be the case. This is another area where trust will help garner consumer adoption of self-driving vehicles. The repair industry is still trying to understand and operationalize these very complicated and delicate technologies. For example, many ADAS features rely on cameras to help determine a vehicle’s position in relation to the road, stationary objects and moving vehicles or people. These cameras may be mounted in different areas depending on the vehicle’s make and model. Something as seemingly simple as replacing a cracked windshield could mean the difference on whether a particular safety system continues to properly engage, if the new windshield isn’t designed or calibrated for the correct model’s specifications. Even though most consumers leave the repair shop trusting that their vehicles are functioning properly, given the wide disparity between manufacturers’ product offerings, the complexity of calibration that is required for these technologies and the repair facility’s capabilities, that trust is possibly misplaced. See also: The Evolution in Self-Driving Vehicles   It would be beneficial for the service and repair industry, car buyers and the insurance industry as a whole for automakers to develop a uniform process and governance that all repair facilities can use to verify that any repairs for vehicles equipped with ADAS features are calibrated correctly. This would help ensure the accuracy and consistency of driver assistance technology repairs through a vehicle’s lifecycle. Unfortunately, there’s no clear indication of when something like this might be put into place, which further limits the potential for fully automated vehicles to grow beyond a niche in the automotive marketplace. The main factor in making self-driving vehicles a reality is transparency. Keeping consumers informed about all aspects of the technology they’re investing in—why they need it, how it works, when it will activate and how to tell if it’s still functioning as intended—will go a long way to keep this journey marching forward with fewer roadblocks.

Flood is a complex natural catastrophe, with great variations across small spatial areas, producing extremely localized effects. Sometimes, one property may be badly flooded while its neighbor two doors down is spared. As a result, managing flood risk is often seen as a challenge by U.S. insurers. In fact, although 90% of all natural disasters in the U.S. involve flooding, according to the Insurance Information Institute, it could still be regarded as the least understood natural peril. Until recently, the complexities of flood behavior have been too intricate to fully represent using broad-scale modeling techniques. Likewise, flood data in the U.S. was not detailed enough to enable insurers to see the full picture of the hazard. Flood data has many other pitfalls, from being badly out of date to not providing full details on the different types and severities of flooding. However, through continued advances in technology and data availability, we’re now able to achieve a more detailed analysis. Technology is rapidly progressing, and it’s incredible to think how much more we can achieve now than we could just a couple of decades ago. Lessons from Donkey Kong: Using technology from the computer gaming industry A key part of the flood mapping process is hydraulic modeling, and at JBA we run our hydraulic models using technology that was primarily developed for the computer gaming industry. You only have to consider how far the video game industry has come, from Donkey Kong to Fortnite, to understand advances that hydraulic models have experienced. See also: It’s Time to Rethink Flood Coverage   Donkey Kong was released as an arcade game in the early 1980s and was a breakthrough. However, the difference in resolution between the 1980s Donkey Kong and today’s version is striking. ©Copyright Nintendo Our hydraulic models, which run on very similar technology, are now also much more sophisticated, and the resulting flood maps are more detailed and informative than ever. Artificial intelligence (AI) and satellite data We have also seen advances in artificial intelligence (AI) and machine learning, which fill knowledge gaps in our input data, as well as satellite technology, enabling us to access better data on elevation, land use and rivers. For example, we’ve trained machines to analyze elevation data to locate all the levees in the U.S. We are using similar algorithms to check the hydraulic model outputs for unusual patterns, which might indicate quality issues that we can then address much more quickly and effectively than before. See also: Here Is How to Make Flood Insurance Work   Over recent years, satellite technology and other techniques have improved, which means the quantity and quality of data on land use, rivers and rainfall, as well as on elevation, have increased significantly. We’ve progressed from using contour lines on maps to having light detection and ranging (LIDAR) data to sub-centimeter accuracy to describe the topography of an area. As a result, we can achieve a lot more detail in flood mapping. This can help insurers to better understand flood risk in the U.S. and allow them to capitalize on latent opportunities in the private flood insurance market.

The FBI reports that the total cost of insurance fraud is estimated to be more than $40 billion per year, costing the average U.S. family – in the form of increased premiums – between $400 and $700. A long-established and growing problem, insurance fraud has its many guises – ranging from tiny, one-off opportunistic cases to multimillion-dollar syndicates of customers and suppliers working together to routinely defraud insurers. Luckily, digital enhancements within the insurance industry have been able to help companies lessen certain fraud risks – particularly when data analytics is brought into the mix. To remedy insurance fraud using data analytics, individuals and businesses must be analyzed as they exist in the real world – as holistic, connected entities. To make these kinds of connections accurately, detection strategies must process high volumes of data in real time, be able to generate and constantly update a view of entities and apply a scoring model to the full picture. This allows companies to track and catch fraud, even across insurance lines and when multiple people are involved. Fortunately, there are now technologies that are able to do just that – detect fraud and understand risk throughout a customer’s lifecycle. This will, in the long run, provide better claims processing and a healthier insurance system. See also: Leveraging Data Science for Impact   Quantexa, a data analytics firm that uses AI technology to piece together suspicious customer behavior, enables companies to make better decisions with their data. Their technology allows users to knit together vast and disparate data sets and derive actionable intelligence, a task that would normally take a human many months to complete. This technology can be focused on a single person and the many data points that are correlated to him or her, or larger entities such as corporations. Technology like that of Quantexa’s can gather both claims and policies and build a network that provides three levels to which one can apply analysis: The claim: This analyzes claim behavior over a long period. For instance, has a person filed for soft tissue damage multiple times? If so, how often and at what rate? This frequency could be a marker for fraud. There is also the ability to review if claims are filed close to when policies are taken out – another marker for fraud. The entity: The entity can be either a claimant or, say, a medical provider; the analysis lies within the relationship between the two entities. Believe it or not, there are instances where medical providers have intentionally and habitually provided the wrong injury code; for example, if a claimant is in the hospital for an injured leg, the medical provider bills the insurance company for a more expensive procedure, such as a hysterectomy. Technology can detect and assess injury code discrepancies. The network: This is based on the density of relationships and connections between claimants, witnesses, medical providers and beyond, and can stem from both claim information and transactional data. For instance, are multiple claims from “different” claimants all going to the same bank account? Factors can be pieced together to paint a larger picture on where fraud is originating. See also: How Connected Data Can Help Stop Fraud   Technology allows fraud to be detected much earlier on and across much larger schemes than humans ever could – a fact that should give thieves something to be concerned about, and all honest insurance policyholders something to rejoice about.

A man in New Zealand, called into a meeting where he knew he would be getting fired, used an unusual tactic for the event. He hired a professional clown to sit in on the meeting with him. The clown's primary function during the termination meeting was to blow up balloon animals and mime crying while the man got fired. I bet HR never saw that one coming. To a fly on the wall, the scene had to be hysterical. The employee, who was a copywriter for an ad agency, received an email from his boss asking to meet to "discuss” his role. He was also advised to bring a “support person” to the meeting. He said he thought that “Joe the Clown” would be the best type of support he could have. They sure do things differently in New Zealand. Here in the U.S., we normally bring armed security to these types of meetings, and usually the clown is the one getting canned. It had to be an extraordinary sight. As the HR people droned on about policy and procedure, Joe the Clown was busy making balloon dogs and other animal creations. The mimed crying when the man was handed his termination paperwork was a nice touch, as well. According to the now-former employee, "It was rather noisy, him making balloon animals, so we had to tell him to be quiet from time to time." Imagine not even being able to hear the reasons you were being let go. This story further cements my basic impression of clowns making balloon animals. They are annoying, and the squeaking noise they make is like nails on a chalkboard. If this guy had really wanted to make an impactful story, he wouldn't have hired Joe the Clown. No, he would have brought in Pennywise the Dancing Clown, from Stephen King's story, “It.” Now THAT would have been the real headline. It is not often that HR gets terminated by a maniacal clown during the termination of a corporate fool. Or, for a slightly less intimidating effect, he could have brought this guy: via GIPHY In all seriousness, you have to wonder if the agency made a mistake. The now-former employee, who by the way is also a comedian, might not have been a good copywriter, but he clearly is a creative soul. This ad agency likely never produced any product that got the attention and coverage that the termination of one of their employees has received. The story has gone worldwide and made the agency famous, albeit not for reasons the agency would probably like. I seriously doubt there is an Addy Award for “Most Imaginative Termination Support Person.” The agency has to be thinking that maybe they took out the wrong clown. See also: 15 Keys to Mental Health Safety Net   Maybe there is a lesson for us here in the U.S. With the continual decline in socialization and increasing levels of workplace violence, conducting terminations that are safe today is a real concern. Just last week in Tallahassee, Fla., a man went on a rampage and stabbed five people at his workplace when he believed he was about to be fired. Perhaps employers could start hiring clowns to soften the message and help lighten the mood at these types of meetings. Of course, it might help if the clown is armed. It certainly could change the tone of the event. It would also completely change the meaning of the phrase, “It's time to fire John. Go ahead and send in the clown.”