The Hidden Culprit Behind Persistent Inflation: Surging Insurance Costs In the ongoing battle against inflation, a frequently overlooked factor is casting a long shadow: the sharp rise in insurance costs. As we navigate through the complexities of the economy, Federal Reserve Chair Jerome Powell sheds light on an unexpected inflationary pressure—soaring rates for home and car insurance. These escalating costs are not just numbers on a page; they’re actively undermining efforts to stabilize interest rates and posing a significant challenge to consumers and policymakers alike. The Inflation-Insu ..read more

Turning Digital Behaviors into Real-Time Actionable Insights in P&C Insurance In the dynamic landscape of P&C insurance, the ability to harness actionable insights from digital behaviors has increasingly become a competitive advantage. Companies like ForMotiv are at the forefront, advancing the industry by translating digital behaviors into real-time actionable insights that drive tangible outcomes for insurance carriers. Through our proprietary platform and unique behavioral features, we address critical challenges faced by carriers, including Premium Leakage, Fraud, and Conversion Li ..read more

Uncovering the Hidden Truth: The Growing Challenge of Nondisclosure in Life Insurance One of the most pressing issues for life insurance carriers, as they migrate to digital and accelerated underwriting, is the rising prevalence of nondisclosure and material misrepresentation. According to industry estimates, over 7% of life insurance policies written contain some form of non- or under-disclosure, leading to approximately 17% of claims filed being affected, with a staggering $15 billion in claims costs per year. The statistics surrounding nondisclosure paint a concerning picture of the industr ..read more

Looking Back at 2023 and Some Thoughts on 2024 As we reflect on the successes of 2023 and express gratitude to our customers, partners, and employees for pushing the boundaries of insurance digital experiences, it’s clear that 2023 has been a pivotal year for our business and the insurance industry more broadly. The evolving landscape has presented challenges and opportunities, setting the stage for what promises to be an even more transformative year ahead. Around this time last year, I published a letter on what I thought the major themes of 2023 would be. I mentioned how it would be the “Ye ..read more

Leveraging Real-Time Data Providers to Enhance Underwriting Accuracy in P&C and Life Insurance The insurance industry has seen a remarkable transformation in recent years, with data playing a pivotal role in accelerating underwriting processes. As carriers increasingly push for accelerated underwriting and instant decisions, there has been a similar push for real-time datasets to enable this digital underwriting transformation. Real-time data enables them to make more informed decisions when underwriting P&C and life insurance policies online. In this article, we will explore some of t ..read more

The Future of Underwriting | Carriers Aim to Meet Consumer’s Expectations with Automation According to the 2023 Insurance Barometer Study, published by LIMRA, 41% of all US adults have an insurance need gap. This equates to 101 million adults and their families who are at risk should an unexpected illness or accident occur. How can the industry make a dent in this unmet need? The first step is recognizing that consumer needs and expectations are changing, starting with the fact that younger generations have been conditioned to expect on-demand buying experiences. When they want products, they ..read more

AI in Insurance Underwriting | Leveraging Real-Time Data for a Competitive Edge In recent years, the insurance industry has undergone a significant transformation, largely due to developments in artificial intelligence (AI). While Generative AI is the topic du jour, we believe that carriers will be better served to focus on solutions that are insurance-specific and purpose-built to address their current challenges. More specifically, solutions aimed at improving underwriting profitability in a trying macro environment.  How is AI in Insurance Underwriting Used Today? Among its many a ..read more

Generative AI in Insurance: Use Cases, Potential Benefits, and Risks A Brief History In this article, we will discuss the potential use cases for Generative AI in insurance. But first, let’s take a quick look at where this recent phenomenon came from. Generative AI, a subset of artificial intelligence has recently exploded in popularity due to the virality of ChatGPT. It has shown incredible potential in various industries and is the fastest app to ever reach 100mm users.  It should be noted, however, that this technology is not brand-new. Instances of Generative AI date back to the 1960s ..read more

ForMotiv Welcomes Sue Tyler as Newest Board Member, Leveraging Her Extensive Insurance Background and Leadership Expertise Philadelphia, September 2023 — ForMotiv, a leader in Behavioral Data Science, is thrilled to announce the appointment of Sue Tyler as the latest addition to its esteemed board of directors. With an exceptional career spanning various sectors of the insurance industry, coupled with her startup and corporate board experience, Sue brings a wealth of knowledge and strategic insight to the ForMotiv team. Sue Tyler boasts a notable track record of driving businesses to success ..read more

Insurance Analytics Use Cases  In the intricate realm of insurance, where risk and uncertainty converge, data has emerged as the guiding light that helps insurers steer through turbulent waters. The journey of insurance analytics use cases is one marked by transformative shifts, from historical analysis to real-time predictions and futuristic AI-powered insights. This article explores the past, present, and future of insurance analytics use cases, highlighting how data-driven strategies are reshaping the industry. The Evolution of Insurance Analytics Use Cases As the proliferation of data ..read more