Coverage innovation award to honor positive changes
Time is running out to recognize innovative solutions in the PropertyCasualty360 Insurance Luminaries program.
In business in general and the P&C insurance world in particular, companies both small and large are reinventing themselves to stay ahead of the competition and provide policyholders with innovative coverage solutions.
Parametric insurance represents one such insurance coverage innovation. During a recent InsuranceSpeak podcast, Alex Kaplan, executive vice president for alternative risk, Amwins Group, explained the nuances of parametric insurance and its far-reaching benefits.
Parametric insurance is fundamentally different than traditional indemnity-based insurance, Kaplan explained. Think of it as event-based or index-based coverage.
“Some of the oldest forms of insurance, like life insurance, are parametric in nature,” Kaplan said. “There’s a predefined event that must occur, and when that predefined event occurs, the trigger is breached and the policy or the claim is paid. With a parametric structure, you’re most oftentimes using real time data, and you’re indemnifying the insured against the characteristics of an event.”
Kaplan added that there are key benefits of parametric insurance, the first of which is the speed of payment. Parametric policies use real-time data to determine payouts.
“Imagine having a loss event and a claim paid in the same business day,” Kaplan said. “That really is directionally where the industry is going with respects to parametric structures.”
Parametric insurance also offers flexibility in terms of how the proceeds can be used.
“We’ve seen as many enterprises or entities using parametrics to cover exposures which are otherwise uninsured,” Kaplan said. “You might also see circumstances where enterprises are heavily interconnected with other enterprises. So they have all this sort of exogenous risk, which may not be captured by traditional insurance, and they’ll use parametrics to cover those uninsured exposures. People also are utilizing parametrics simply to add and reinforce capacity to their traditional property programs. And it’s expanding quite broadly. We are starting to see parametric structures, in cyber, in management liability, and the list continues to grow. And I think truly, we’re only beginning to really scratch the surface in terms of what’s possible.”
Insurance innovations such as this are at the heart of the 2023 PropertyCasualty360 Insurance Luminaries recognition program.
Five categories to honor insurance innovation
There is no limit to the number of nominations each P&C insurance firm, company or vendor chooses to submit. Nominations are now open in the following categories:
- Technology Innovation — Honorees in this category are pacesetters who push insurance carriers, organizations, vendors, agencies and brokerages forward in terms of digitalization, modernization, and client and customer experiences.
- Risk Management Innovation — Honorees in this category find fresh and inventive ways to address insurer and insured risks while fostering advanced thinking and action when it comes to risk-related communication and mitigation.
- Coverage Innovation — Insurance reflects the world. As societies shift, so too should insurance options. Honorees in this category are furthering fresh approaches to protecting today’s diverse policyholders.
- Claims Innovation — Honorees in this category thoroughly understand the impact that a single claim can have on policyholder satisfaction. They foster progressive tools and practices to manage claims, and further fraud and claims mitigation.
- Innovation in Workplace Culture — Honorees in this category know how to promote the insurance industry as a great place to build a career. They actively support current insurance professionals and are engaged in finding and training new insurance stars. They are vested in fostering satisfied employees through diversity and inclusion initiatives, health and wellness programming, Environmental Social and Governance (ESB) initiatives, community service and more.
How are honorees selected/?
Honorees will be selected based on their scores in the following areas, with 0 being the lowest and 5 being the highest in each area, for a total of 25 possible points:
- How well has the nominee stated and achieved goals with regards to the nomination category? (0-5 points)
- How impactful has the nominee been? (0-5 points)
- How measurable is this impact, either in quantitative or qualitative results? (0-5 points)
- How dedicated has the nominee been to furthering modernization and humanization in the P&C insurance business? (0-5 points)
- What level of commitment has the nominee shown to the highest ethical standards as well as dedication to service and excellence? (0-5 points)
The nomination window has been extended to June 7, 2023.
Honorees will receive…
- Recognition in the October 2023 issue of NU Property & Casualty magazine as well as online at PropertyCasualty360.com.
- A formal press release along with social media and public relations guidance around promoting this honor.
- The opportunity to purchase a badge for their website and business communications as well as more visible print and digital recognition within our publications.
Submit your nominations today!
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