Insurance Technology: Agents and Multi-Factor Authentication; TA Invests in Insurity Again; GCube Touts AI in Renewable Energy

ID Federation Offers Multi-Factor Authentication Resource for Agencies

Insurance carriers and their agency partners face a “gathering storm” of confusing requirements and changes in the area of multi-factor authentication (MFA) to improve secure logons, according to ID Federation, the nonprofit coalition that developed the free SignOn Once, a single-sign-on service for online security.

The volunteer-led organization announced an information resource for the independent agent distribution channel to improve MFA in agent-facing technology portals. The executive brief provides information on MFA implementation.

MFA allows a user to gain access to a website or application only after accurately presenting two or more pieces of evidence. Also called “two-step authentication,” MFA is an additional component beyond ID and password to create a more secure connection.

Some carriers that are implementing their version of MFA may not fully understand the impact on their agents, especially if every carrier mandates a different solution, the executive brief says. The coming requirement for cyber carriers to mandate MFA for policyholders adds yet another level of confusion.

“While creating value for customers and business partners, every insurance organization must also avoid damage to client relationships, agent relations, operations and brand value,” says Irv Kantar, business manager of ID Federation. “As the basics of security change, carriers and business partners need to remain up to speed.”

Regulatory bodies, such as the New York Department of Financial Services and the National Association of Insurance Commissioners, have released rules in recent months on when MFA must be used in conducting business.

The executive briefing, called “Multi-Factor Authentication for Independent Agencies: A Gathering Storm?” was prepared by ID Federation’s volunteer leaders with experience across the independent agency channel.

Insurity Announces Growth Investment from TA Associates

Insurity, a provider of cloud-based software for the property/casualty insurance industry, announced that private equity firm TA Associates is making a strategic growth investment in the company. According to the announcement, TA, together with Insurity’s current investor GI Partners plan to further accelerate Insurity’s growth.

This investment — the amount was not disclosed — marks a return to TA to Insurity, in which it invested in 2014 and then sold to GI Partners in 2019.

Founded in 1985 and headquartered in Hartford, Connecticut, Insurity’s software serves P/C carriers, brokers and managing general agencies.

GCube Unveils Renewable Energy Insurance With AI-Analytics

Renewable energy underwriter GCube has launched a data-powered insurance unit called Clir that will leverage AI-led analytics and data sets to offer enhanced terms and reduced premiums for wind and solar operating companies.

GCube said it will leverage Clir’s data from more than 200 gigawatts of operating assets to better understand claims scenarios and provide more accurate insurance quotes, subsequently driving better terms for the industry. By having Clir onboard a wind portfolio’s data set onto its platform,

GCube can uncover the asset’s meteorological and operational loading, overall component health and reliability, and the impact of current operations and maintenance. These insights give GCube clarity on its underwriting pricing, and offer more competitive terms where operating projects model with lower risk factors.

Over the last 10 years, renewable energy insurance has been characterized by significant losses that have resulted in the market altering terms in order to compensate. Moreover, as the wind and solar industries have expanded in scale, claims severity has increased. With insurance premiums resetting to a new base, renewable energy project operators face increasing insurance costs.

“Insuring renewable energy has been a tumultuous process over the last decade,” said Fraser McLachlan, chief executive officer, GCube Insurance Inc. “Claims from equipment failure, natural catastrophe loss and contractor error have forced some underwriters to exit the market. To continue to offer insurance at sustainable rates for clients, we need to have deeper insights into the risk of failure and operational management of renewable energy equipment.”

McLachlan said that the data analysis from Clir gives clients a better understanding of their project risks, and, incentivizes best practice in the operational asset management of wind and solar.

“We’ve seen insurance in other sectors become more competitive, and better serve the needs of its clients, through utilizing AI-led approaches to data – be that telematics for motor insurance, or wearable technologies for health coverage – and it’s time that we harnessed the same value for the hugely important task of building and sustaining low carbon power generation,” he added.

Topics Agencies InsurTech Tech Energy Data Driven Artificial Intelligence