The lack of high-quality public cyber incident data limits empirical research and predictive modeling for cyber risk assessment. This challenge persists due to the reluctance of companies to disclose incidents that could damage their reputation or investor confidence. Therefore, from an actuarial perspective, potential resolutions conclude two aspects: the enhancement of existing cyber incident datasets and the implementation of advanced modeling techniques to optimize the use of the available data. A review of existing data-driven methods highlights a significant lack of entity-specific organizational features in publicly available datasets. To address this gap, we propose a novel InsurTech framework that enriches cyber incident data with entity-specific attributes. We develop various machine learning (ML) models: a multilabel classification model to predict the occurrence of cyber incident types (e.g., Privacy Violation, Data Breach, Fraud and Extortion, IT Error, and Others) and a multioutput regression model to estimate their annual frequencies. While classifier and regressor chains are implemented to explore dependencies among cyber incident types as well, no significant correlations are observed in our datasets. Besides, we apply multiple interpretable ML techniques to identify and cross-validate potential risk factors developed by InsurTech across ML models. We find that InsurTech empowered features enhance prediction occurrence and frequency estimation robustness compared to only using conventional risk factors. The framework generates transparent, entity-specific cyber risk profiles, supporting customized underwriting and proactive cyber risk mitigation. It provides insurers and organizations with data-driven insights to support decision-making and compliance planning.

As the Insurtech industry continues to evolve rapidly, it's essential to stay informed about the latest trends shaping the sector. To help you stay ahead of the curve, we've gathered insights from 14 industry experts on the most significant trends happening in Insurtech today. From personalized insurance offerings to the adoption of AI and blockchain technology, these trends are revolutionizing the way insurance is delivered and experienced by customers. A growing trend within Insurtech is the development of personalized insurance offerings. By utilizing AI and advanced analytics to analyze customer data, Insurtech companies can provide tailored insurance products based on individual needs and risk profiles.

If you think embedded insurance is the only hot thing in insurtech these days, we've got a surprise in store for you: While it's true that startups that help sell insurance together with other products and services are enjoying tailwinds, there are plenty of other opportunities in the space, several investors told TechCrunch . You see, insurtech startups often need to take into account the myriad rules and regulations in place when they seek to innovate and embed insurance into products, which might make it difficult to pull it off. Given the current emphasis on achieving cost efficiency to extend runways in the broader startup ecosystem, it appears investors are open to insurtech startups that can build a sustainable business model, regardless of it including embedded insurance. "Insurtech startups that do not offer embedded insurance, and rather provide other innovative solutions will still attract VC funding this year, especially if they can show cost-efficient and sustainable growth," said Nina Mayer, a principal at Earlybird. And according to David Wechsler, a principal at OMERS Ventures, "having an embedded strategy is not required for venture funding."

Breaking news at the time of writing is that American artificial intelligence (AI) company OpenAI has released Generative Pre-trained Transformer 4 – more commonly known as GPT-4 (14 March 2023). The launch of this latest multimodal large language tool further increases the AI opportunities and risks facing the insurance industry. This latest version of OpenAI's chatbot can respond to images and it processes around eight times as many words as the original ChatGPT model launched in November 2022. Trained on text taken from the internet, ChatGPT has been designed to provide quick and understandable answers to any question. Read: AI has'enormous potential benefits' for insurance but regulators should target'safe and responsible adoption' – Kennedys Ian McKenna, chief executive of the Financial Technology Research Centre, said: "If you look at what some of these chatbots can do now and extrapolate what they will be able to do in four or five years' time, it's really quite scary. "People won't have to remember facts and data in the same way and it will have an enormous impact on insurance on so many fronts.

If you think embedded insurance is the only hot thing in insurtech these days, we've got a surprise in store for you: While it's true that startups that help sell insurance together with other products and services are enjoying tailwinds, there are plenty of other opportunities in the space, several investors told TechCrunch . You see, insurtech startups often need to take into account the myriad rules and regulations in place when they seek to innovate and embed insurance into products, which might make it difficult to pull it off. Given the current emphasis on achieving cost efficiency to extend runways in the broader startup ecosystem, it appears investors are open to insurtech startups that can build a sustainable business model, regardless of it including embedded insurance. "Insurtech startups that do not offer embedded insurance, and rather provide other innovative solutions will still attract VC funding this year, especially if they can show cost-efficient and sustainable growth," said Nina Mayer, a principal at Earlybird. And according to David Wechsler, a principal at OMERS Ventures, "having an embedded strategy is not required for venture funding."

The graph represents a network of 2,601 Twitter users whose tweets in the requested range contained "InsurTech", or who were replied to or mentioned in those tweets. The network was obtained from the NodeXL Graph Server on Friday, 02 December 2022 at 13:39 UTC. The requested start date was Friday, 02 December 2022 at 01:01 UTC and the maximum number of tweets (going backward in time) was 7,500. The tweets in the network were tweeted over the 8-day, 14-hour, 45-minute period from Wednesday, 23 November 2022 at 10:15 UTC to Friday, 02 December 2022 at 01:00 UTC. Additional tweets that were mentioned in this data set were also collected from prior time periods.

The Underwriting Agencies Council (UAC) says annual gross written premium at Australian agencies is now around $7.5 billion, and technology-enabled firms are leading the way as the sector expands dramatically. Sydney-based GM William Legge says UAC now has more than 120 agency members, even as mergers and acquisitions created fewer, larger agencies and a build-up of "cluster groups" owning multiple specialist agency brands. As major carriers relinquish capacity in some lines, the agency market is filling gaps in coverage, Mr Legge says, and brokers have found agencies to be a trusted, reliable market that can provide responsive service, quick turn-around times, and bespoke, tailored products for hard-to-place risks. Insurance consulting firm Xceedance offers its MGA Agility Suite tailored platform to agencies, encompassing policy administration, underwriting, distribution, a broker portal and reporting functionality. Xceedance works with agencies and insurers to facilitate and support end-to-end insurance processes across claims, finance and accounting, insurance operations, catastrophe modelling, underwriting, actuarial and analytical services, policy services and data management.

When Lemonade first launched back in 2015, selling insurance to homeowners and renters in New York from 2016, its mission was to build the most lovable insurance company in the world. Explore insurtech-related content here or discover more news analysis content here. From the off, Lemonade - which is run by co-chief executives Daniel Schreiber and Shai Wininger - aimed to be the darling of the insurtech world by targeting first time insurance buyers and using artificial intelligence (AI) to generate speedy claims payouts. Following its partnership with insurer Aviva in October 2022 to launch a contents insurance proposition in the UK, the insurtech has grown to now operates across five territories - the UK, US, Germany, the Netherlands and France. Schreiber, himself a Brit, was particularly pleased with Lemonade's launch into the UK insurance market.

The graph represents a network of 2,614 Twitter users whose tweets in the requested range contained "InsurTech", or who were replied to or mentioned in those tweets. The network was obtained from the NodeXL Graph Server on Friday, 25 November 2022 at 13:42 UTC. The requested start date was Friday, 25 November 2022 at 01:01 UTC and the maximum number of tweets (going backward in time) was 7,500. The tweets in the network were tweeted over the 22-day, 13-hour, 52-minute period from Wednesday, 02 November 2022 at 11:05 UTC to Friday, 25 November 2022 at 00:58 UTC. Additional tweets that were mentioned in this data set were also collected from prior time periods.

May 5, 2022Tech-driven innovation is fundamentally reshaping the insurance industry. Emerging capabilities including telematics, artificial intelligence, machine learning, and automation have transformed nearly every aspect of the insurance value chain and continue to create new and improved omnichannel experiences for customers1. Insurtechs are the driving force of this evolution,2 and investors are taking note. Venture capital (VC) investment has grown faster than the more mature private-equity or public-markets funding. In 2021 alone, the total amount of VC invested in insurtechs surpassed $11 billion, double the amount invested in 2020.3