Future Insurer #19

Future Insurer #19

Welcome to Future Insurer #19! And it’s a bumper edition given there has been quite a bit of news this fortnight.

It’s sometimes hard to see the forest from the trees with so much InsurTech News. In this fortnightly newsletter, I’ll be picking out some of the most interesting #insurtech and #insurance developments from the past fortnight.

If you’re new here, welcome! 👋 Make sure to hit subscribe if you want to receive this each fortnight. Now onto this week’s top picks…

In this edition’s news:

📢 Gallagher Re’s InsurTech Report for Q3 is out

Gallagher Re’s InsurTech Report is always a good read, so I was excited to get my hands on the Q3 report when it dropped! Some important health indicators in the Q3 report. Noting the current economic climate, not surprising to see deal sizes dip to a six year low but it is promising to see a rebound in global funding as a whole, up 19.8% on the past quarter. General insurance and US-based InsurTechs received more love from investors than L&H InsurTechs.

🖥️ “Artificial intelligence (AI) holds extraordinary potential for both promise and peril.” – US Executive Order on AI

On 30 October 2023, President Biden issued the Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence. The order requires regulatory action across risk management, discrimination, workplace relations and competition. The Executive Order highlights the risk AI places, and with this regulatory overlay, it seems inevitable that AI related claims will emerge in areas such as market disclosure, board oversight and employment practices.

➡️ What’s NEXT? Allstate & Allianz X participates in USD 265m funding round

Small business insurance is getting some attention, with Allianz X and Allstate announcing participation in NEXT Insurance’s recent funding round, taking the total round to USD 265m. NEXT is a digital first insurance provider, using machine learning to simplify the insurance purchase journey. The money will be used to further expand its offerings.

💲 UK clarifies cryptoasset and stablecoin regulation

In Future Insurer #18, I mentioned Australia’s proposal to regulate crypto. The UK is staying one step ahead. HM Treasury has just released three proposal documents. It intends to establish a regulatory framework for cryptoassets, regulate fiat backed stablecoins and manage systemic digital settlement asset firms. The race is on to create a jurisdiction that provides market confidence and stability for crypto.

🌐 Coalition launches in Australia!

And no, I’m not talking about the Coalition but something more exciting, Coalition! Small to medium businesses can now access Coalition’s “Active Cyber Insurance” offering, which is more than your typical cyber insurance product. Coalition provides real time cyber security monitoring combined with insurance protection. Coalition is backed locally by their global partner Allianz.

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Tim Chan is an insurance & insurtech lawyer at global law firm Norton Rose Fulbright and Founder of The InsurTech Lawyer blog. He regularly advises insurers and startups on emerging legal issues affecting the industry. Follow Tim on Twitter: @timinsydney

Disclaimer: This newsletter provides general information only and does not constitute legal, financial or other professional advice. It does not address the circumstances of any particular individual or entity. You should seek your own professional advice.