Tag: AI

Catastrophe Losses in 2024: A Challenging Year for the Insurance Industry

Elizabeth Price
Challenging Year for the Insurance Industry

2024’s Insurance Industry Turmoil: State Farm and Others Navigate the Aftermath of Hurricanes Debby and Beryl The year 2024 has proven to be a tumultuous period for the insurance industry, with back-to-back natural disasters resulting in substantial financial losses for major insurers. Hurricanes Debby and Beryl have left a trail of destruction across multiple states, posing significant challenges for companies like State Farm and Allstate as they navigate the aftermath. Hurricane Debby made landfall as a Category 1 hurricane in Florida’s Big Bend region on August 5, 2024. With maximum…

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Gen Z’s Truth About Lying: A Tech Revolution in Insurance

G. Turner
Gen Z - Masks

In an unexpected twist, the high rate of insurance application falsifications by Gen Z has become a catalyst for technological advancements within the insurance industry. NerdWallet’s 2024 Insurance Dishonesty Report reveals that 42 percent of Gen Z-ers have admitted to lying on insurance applications to secure better rates. This trend, while initially alarming, is driving significant innovation in how insurers handle data and assess risk. Generational and Gender Perspectives on Insurance Dishonesty Emerging trends highlight a generational and gender divide in attitudes towards insurance dishonesty. Men are generally more inclined…

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AI is changing the insurance industry, right down to policies

Nordstrom
Insurance industry Policies - AI

Insurers are using artificial intelligence in a number of ways to improve offerings Artificial intelligence (AI) has taken steps into many different kinds of business, and the insurance industry is no exception. Technology is helping insurers to better understand consumers The insurance industry is able to glean information about consumers from many different sources. After all, the average American relies on tech in a host of different ways, ranging from social media posts and fitness trackers to smart home devices and telematics dongles installed in vehicles to track driving behaviors.…

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State Farm slapped with $2 million fine for underpaying auto insurance claims

Marc
Auto insurance Fine - gavel money

State Farm has agreed to pay a $2 million fine for having underpaid auto insurance claims. The fee was the result of a Montana Commissioner of Securities and Insurance (CSI) investigation into the insurer that lasted about two years. If corrections aren’t made, the insurer will be required to pay double the fine. State Farm is required to change its claim handling practices in order to avoid continuing to underpay auto insurance claims. If it fails to do this, it will need to pay an additional $2 million beyond the…

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Insurance companies look to artificial intelligence for a spectrum of tasks

Logan B.
insurance companies - AI use

From due diligence to identifying cyber threats and even part of the underwriting process, AI is rising in use. Insurance companies are discovering that artificial intelligence (AI) has the potential to improve the efficiency of the underwriting process, as well as to provide added security and due diligence assistance. While cyber criminals are using AI to try to convincingly defraud insurers, insurers are also using the tech. Generative artificial intelligence is moving quickly, and insurance companies are moving to try to work it into their underwriting process as cyber threats…

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