Insurance Nerds

We are still #hiring! Know anyone who might be interested?

🚨 Is Insurance the Silent Deal Killer in Commercial Real Estate? 🚨 Insurance costs are rising faster than rent growth, threatening profitability for real estate investors—especially in high-risk areas like California, Texas, and Florida. By 2030, premiums in some regions could double, making insurance a critical factor in deal-making. In our latest podcast, Skylar Romines, a 17-year commercial insurance veteran, shares actionable insights to: ✅ Build competitive insurance programs to reduce long-term costs ✅ Leverage smarter strategies like captives and renters’ insurance pools ✅ Navigate AI-powered underwriting and stricter liability coverage Learn how to stay ahead, protect your investments, and turn insurance into a competitive advantage. 🎙️ 🔗 Don’t miss it—listen now! #RealEstateInvesting #CommercialRealEstate #InsuranceTrends #RiskManagement #FutureProofYourPortfolio

Can data scientists kill insurance pricing? Three facts: 1. The demand for actuaries is projected to increase by 24% between 2020 and 2030 – much faster than the average profession which is 5%. 2. The supply of actuaries is decreasing - we can all see that there are new, more sexy jobs like data scientists. 3. The sophistication of pricing processes is increasing worldwide. Given these trends, it's no surprise that insurance pricing leaders are building data science teams. However, this creates challenges - bridging the gap between actuaries and data scientists is not always seamless. Key tensions include: 1. Misalignment on business needs, such as understanding which features are valid for pricing models. 2. The struggle to balance explainability and accuracy in predictive models. For pricing leaders, these challenges make it harder to scale teams effectively which can lead to disaster. What’s your take? Can data scientists and actuaries truly work in harmony?

One insurance gap almost wiped 40% off this insurtech's valuation overnight. Here's how we helped their CFO… The call I got from their CFO was one we get multiple times a year. They now needed deeper expertise. Like many funded startups… They put a basic insurance program in place during their friends & family round. Box ticked. Rolled it through their Series A. Three years later: In the market for a new capital raise. A matured digital I platform serving thousands of customers, and partnerships with several sizeable banks. But their insurance program was still stuck in 2021. Their risk management framework and insurance coverage were speaking different languages. And one insurance savvy investor flagged a gap during due diligence that left a major exposure unchecked. From a 30k view… Here's the insurance framework we helped them design to protect their Series B valuation: 1. Cyber Insurance → ransomware/extortion limits → tech platform interruption calc 2. Technology E&O → software failure coverage → customer data handling errors 3. D&O for Tech Companies → IPO/funding round protection → regulatory tech compliance 4. Coverage Adequacy → tech platform exposure limits → API/integration gap analysis 5. Regulatory Tech Insurance → fintech compliance coverage → digital insurance regs 6. Cost Optimization → insurtech market benchmarking → startup growth scaling costs 7. Data Liability → AI/ML decision coverage → data privacy protection 8. Policy Terms for Tech → API failure exclusions → cloud service interruption 9. Property Insurance → server/hardware protection → remote workforce coverage 10. Risk Management Services → cybersecurity programs → tech incident response 11. Emerging Tech Risks → blockchain exposure → AI liability assessment 12. Coverage Integration → legacy vs digital coverage → partner API protection 13. Claims Process → digital claims handling → real-time reporting systems 14. Policy Documentation → digital certificate system → API-based policy mgmt 15. Market Conditions → insurtech capacity limits → digital insurance trends 16. Regulatory Compliance → fintech licensing reqs → digital compliance reporting 17. Risk Transfer Alternatives → parametric solutions → micro-insurance platforms 18. Coverage Triggers → digital incident definition → automated notice systems 19. Insurance Program Structure → tech platform coverage → startup scaling structure 20. Specialized Tech Needs → open banking exposure → digital payment protection 21-25 Cont in comments… P.S. if you like this post you’ll love our newsletter. Every Friday we flag the top three articles impacting the global insurance markets. It’s for busy executives that want to stay current on the market…

Wind driven fire in Shrubland near Pepperdine led to ignition of patio furniture and then to hot tub ignition. November 6, 2024. Photo: Keegan Gibbs - Santa Monica mountains, Community Fire Brigade