Plug and Play Insurance Selected its First Round of Participating Startups

Steven Kaye

The Plug and Play Tech Center winnowed down 800 candidates to choose 23 to participate in its Plug and Play Insurance technology business development program, working with global insurance partners ranging from agencies (e.g, Pronto) to aggregators (e.g, Compare.com) to carriers (e.g., Farmers Insurance, Munich Re, SOMPO Digital Lab). A few themes jump out when looking at the companies that were chosen:

  • AI and machine learning (DigitalGenius, Inbenta, Omniscience, RiskGenius)
  • Analytics (Cytora, Vivametrica)
  • Connected vehicles and telematics (Driveway, Nauto, splitsecnd)
  • Customer engagement (Amodo, ClientDesk, Sureify)
  • Mobile (ClientDesk again, Cover, Driveway again)
  • Video (Dropin, Livegenic)

Several of the companies fit in more than one category – for example, Safesite’s safety and compliance solution has a mobile component, but also has proprietary safety scoring algorithms (analytics). Amodo and Safesite can both gather data from IoT and wearable devices.

These companies offer carriers the opportunity to tailor their products to individuals’ behaviors, as well as providing a markedly less painful experience of selecting and purchasing insurance offerings. One may quibble over whether these are disruptive or incremental innovations, but either way they offer carriers a way forward, if they’re interested. And judging from the participants in Plug and Play Insurance, several are.

Never mind the start-ups, here’s the quants

Quants

Matthew Josefowicz

While the insurers have been nervously watching Sand Hill Road and the billions of dollars pouring into the InsurTech start-ups that are taking aim at the industry’s weaknesses in customer experience, a potentially more ominous development is taking place a little closer to home: the Quants are coming, and they’re targeting the industry’s ability to model risk.

Yesterday’s WSJ featured a profile of Two Sigma Investments and their joint venture with Hamilton and AIG to use predictive analytics to streamline both the buying experience and the underwriting of commercial risk.

According to the article:

Small and medium-size business insurance is a “gigantic market” and a “data science” problem, [Mr. Siegel] said.

“It’s not just about taking manual processes and automating them,” Mr. Siegel said. “By using our data science, we think we can do a better job of underwriting.”

The algorithms being used by the Two Sigma group’s venture, called Attune, will draw on detail that Two Sigma has obtained from vendors who collect public records and other sources that can tell AIG and Hamilton what they believe they need to know to understand the risk to be insured.

As our recent report on Understanding Insurance Industry Disrupters noted, there are three axes of disruption for insurers: Distribution, Cost Basis, and Product/Risk Analysis.

Most of the Silicon Valley-funded players are focusing on Distribution. While this creates noise and uncertainty, it does not strike at the heart of the industry’s core capability of underwriting risk.
But initiatives like this have the potential to change radically both the cost basis and effectiveness of underwriting risk. That strikes at the industry’s core value the same way that the capital markets’ moves into cat bonds are undermining reinsurance.

The Future is Already Here.

Back in 2011, we wrote about the Deloitte-Aviva pilot program that indicated that risk could be modeled entirely with third-party data, and advised the industry to plan for the days of zero-question underwriting. As far as we know, this Aviva project stayed in the lab and was never operationalized. But last summer, we highlighted MetLife’s Xcelerate program, which brought a similar approach to group auto insurance.

Now, the Two Sigma/Hamilton/AIG partnership is bringing it to commercial lines.

Meet Your New Competitors

Two Sigma’s founders, David Siegel and John Overdeck, cut their teeth at legendary Wall Street Quant shop D. E. Shaw & Co., the same firm that Jeff Bezos left to found Amazon. You know, the guy who says “Your margin is my opportunity.”

Insurers need to suit up. The future is coming at them fast.

Related Research:

News and Views: Disrupters, Autonomous Vehicles, Blockchain for Claims, Reinsurance

Novarica’s team comments on recent insurance and technology news

Boston is launching an Urban Mobility program to test driverless cars, and the U.S. government is proposing 15 benchmarks that autonomous vehicles must meet.

Tom Benton

Novarica comment by Tom Benton, Senior VP of Research and Consulting: “The future of self-driving cars may be fewer accidents, but the immediate impact will be an unpredictable mix of human-driven and self-operating vehicles taking the road together. Coverages will inevitably become more complicated as the convergence of these two vehicle types pose new risks. Some insurers may be choose to profit from this period, while others may choose to exit the market. Pilot programs and legislation may help to smooth what is likely to be a somewhat volatile period, however they are also a move to normalize self-driving vehicles for more rapid entry to market. No matter the case, the gears are in motion to bring self-driving vehicles to the mainstage, and carriers should prepare for the changing car and driver landscape that will ensue.” More from Novarica on autonomous vehicles.

Synechron debuted a blockchain-based accelerator that offers financial services applications in the cloud .

Mitch Wein

Novarica comment by Mitch Wein, VP of Research and Consulting “Synechron’s blockchain offering for claims is part of an ever-growing dialog around various use cases for blockchain. Paying claims automatically based on a trusted source- a disinterested third party- is being discussed for a number of new products. An example we have heard is paying CAT claims for homeowner damage automatically based on weather service data (the trusted third party). There are other possible uses of blockchain for insurance including intercompany charges between entities in large global insurance holding companies, reinsurance negotiations, surety bonds, etc. Blockchain has been the topic of many conversations we have been having with carriers over the last few months. Expect to see more innovation and new product offerings in 2017.” More from Novarica on blockchain.

Both Coverhound and Lemonade launched their websites this week, and MetroMile will begin selling auto insurance.

Steven Kaye

Novarica comment by Steve Kaye, Associate VP of Research and Consulting: “MetroMile, Coverhound, and Lemonade demonstrate three different approaches. MetroMile developed a good front-end and customer service as well as a useful product, and brought underwriting in-house with the purchase of Mosaic. CoverHound also focused on the front-end and customer service and partners with carriers who provide the actual products, the most recent being small commercial insurance. Lemonade has a different business model from other insurers, taking a percentage of premiums as a fee to cover reinsurance and the cost of paying claims, while paying any left-over funds to charities.

All three companies emphasize improved customer service (which includes taking advantage of technology) and making typical insurance processes less painful. With plenty of capital seeking investments, smaller insurers and shell companies to purchase for their licenses, and changes among large established players constantly making experienced industry personnel available, it doesn’t suit the industry to dismiss the potential for genuine innovation.” More from Novarica on insurance industry disrupters.

Customizing coverage to specific risk may be a lifeline for reinsurers

Rob McIsaac

Novarica comment by Rob McIsaac, Senior VP of Research and Consulting: “The reinsurance world, like many other parts of the insurance industry, continues to suffer in the low interest rate environment. Industry projections suggest that combined ratios could increase further in 2017, creating added pressure to find ways to improve operational and underwriting performance. Investment income won’t cover gaps. For big reinsurers an emerging and attractive alternative is to write increasingly customized coverages that use their analytic and technical skills to hone specific prices for more clearly understood risks. In addition to making it harder for smaller, less sophisticated carriers to compete, this can insulate big carriers in other ways. Harder, for example, to take away customized, versus commoditized, business. This trend of customization and tailoring is something we’ve seen in other lines (and for that matter in other industries). We have said before that technology and analytics represent something of an arms race in insurance and this is yet another example. The future is already here, it just is not evenly distributed!” More from Novarica on reinsurance.

News and Views: UBI, On-Demand Insurance, and the DOL

Novarica’s team comments on recent insurance and technology news

The growth of connected cars could make usage-based insurance ubiquitous

Chuck Ruzicka

Novarica comment by Chuck Ruzicka, VP of Research and Consulting: “Adoption of telematics and usage-based insurance has plateaued in recent years, and market penetration has been lower than expected. This partly reflects a lack of consumer excitement around the traditional discount model, but also the reality that UBI schemes require some effort on the part of consumers to implement. As cars become more connected, and smartphone-based telematics apps improve, it will be interesting to see if uptake of UBI increases once it’s as easy as tapping a button on your car’s screen.” More From Novarica on telematics and UBI

Munich Re will underwrite Trov’s on-demand insurance platform

Tom Benton

Novarica comment by Tom Benton, VP of Research and Consulting: “The recent partnership between Munich Re and Trov to provide on-demand insurance is an interesting experiment in providing new kinds of coverage that are more aligned with modern consumer demands. Today’s consumers have come to expect a completely digital purchasing experience, and insurance is no exception. Most customers won’t have the patience to sit through what is often a long and complex process, involving multiple waits and slow correspondence, to obtain specialty insurance, and Trov’s on-demand platform provides a way to for individuals to cover items on their own terms, for less money.”

State farm will start selling impacted annuities in 2017 through their call center as a response to the DOL ruling

Rob McIsaac

Novarica comment by Rob McIsaac, Senior VP of Research and Consulting: For carriers, the timeline remaining for implementing the necessary business process, technology and compensation related changes in order to fully comply with the DOL Fiduciary rules is getting ever shorter. While there remains a hard date for implementing key changes by April of 2017, for many carriers, their distribution partners do not want to run ’17 as a split year. As a result, some important changes need to be made in as little as 15 weeks. What’s notable at this point is that many carriers have really not made public their plans for addressing the compliance requirements for this brave new world. State Farm’s recent move will allow them to provide for a controlled and compliant experience for customers that specifically want to explore their options. This is a notable change in direction for the distribution of these products and it will be very interesting to see if there are similarly significant alternations to the “business as usual” model which emerge as carriers get ready to roll into the New Year.” More from Novarica on the DOL

What to Expect When You’re Expecting (Your Software Vendor to Be Acquired)

Matthew Josefowicz

Another day, another suite vendor buys another small independent component vendor. This time, Guidewire bought FirstBest Systems. The Age of Suites is certainly upon us, and the suite vendors are taking their cue from Pokemon Go. Gotta catch’em all!

As we wrote in June, there are three major trends driving M&A in insurance enterprise software these days: verticalization, suites, and portfolios.

Three Trends in Insurance Enterprise Software M&A

For insurers who rely on systems from independent software vendors, it’s time to think about the inevitable. What would it mean for your favorite vendor to get rolled in to a suite or a portfolio?

Back in 2008, we wrote an executive brief on this topic called What to Expect when You’re Expecting Your Core Systems Vendor to Be Acquired. We’ve updated it and republished it today.

Insurance Industry Doesn’t Own Risk Transfer

Matthew Josefowicz

Interesting article in today’s WSJ about the impact of Catastrophe Bonds on the insurance industry. According to the article, cat bonds and similar investments now account for $72 billion in risk transfer, equivalent to 12% of the $562 billion in the overall reinsurance market. This is triple the level projected for 2016 by Guy Carpenter in a 2012 report.

As information technology makes it more possible to understand and price risk, insurers are losing their monopoly on this kind of risk transfer. At its core, insurance is a very simple industry. There are some entities with more risk than ability to bear it, and there are pools of capital that will take that risk on for a fee.

Novarica Presentation for PCI Tech 2014

All of the entities that facilitate that transfer — whether they are distributors, resellers of risk, carriers of risk, or others — are vulnerable to disintermediation and disruption if they’re not adding sufficient value to justify their existence.

Related: Novarica’s 2014 Webinar on Technology in Insurance: Change, Legacy, and Disparity

News and Views: The “Uninsuranble Underclass”, Startups, Brexit, Annuity Sales, and AI

Novarica’s team comments on recent insurance and technology news

Advances in FinTech and analytics could lead to the creation of an “uninsurable underclass”.

Jeff Goldberg

Novarica comment by Jeff Goldberg, VP of Research and Consulting: “As more customer data sources become available—social media, telematics, wearables, sensors, and drones—at what point do insurers have enough real-time information to switch from a demographic-based risk-pooling model to true individualized pricing? A new report questions whether such advanced analytics could lead to an “uninsurable underclass.” The insurance industry has always tried to assess the risk of a potential policyholder to the best of its abilities, but limitations in technology and data had a secondary impact of allowing a socially beneficial distribution of risk across larger pools of people. Does the industry have a social obligation to maintain some abstraction between its customers and its risk/pricing analysis in order to maintain this approach? If insurers move too far down this path, or start eliminating broad communities of people from affordable coverage, it’s likely the government will step in with healthcare-like regulations.”

Oscar, a health insurance startup, announces cuts in coverage.

Matthew Josefowicz

Novarica comment by Matthew Josefowicz, President and CEO: “This story has been covered with a certain amount of gloating that self-proclaimed disruptors are not immune from the pressures faced by traditional providers. We saw a similar tone in the media, especially the trade media, when Zenefits stumbled on regulatory compliance. But none of this voids the fact that consumers are eager for the ease of use and customer-experience focus that these companies are trying to deliver, nor does it change how dissatisfied customers are with the experience that traditional players offer. On the bright side for incumbents, it may be easier for them to improve their customer experience than for new entrants to effectively operate in the insurance industry.”

Hiscox may set up an EU-based insurance firm in the wake of Brexit and the future loss of “passporting” rights.

Mitch Wein

Novarica comment by Mitch Wein, VP of Research and Consulting: “Hiscox is thinking of setting up an EU based Insurance Subsidiary. This is important since today Hiscox has access to the continent from the UK through the “passporting” rights that allows regulatory capital for product reserves to be in any EU country and the regulatory oversight to be in the EU country of origin, historically the UK since they sell their specialty products through Lloyds of London. In the near future, when the UK is not in the EU, they would lose access to EU countries for their products since “passporting” will no longer be applicable. As I have discussed in a number of blogs on the topic, we expect many carriers to set up EU companies in places like Frankfurt, Paris or Dublin to retain access to EU markets.” More from Novarica on Brexit.

Annuity sales plummeted in 2016.

Rob McIsaac

Novarica comment by Rob McIsaac, SVP of Research and Consulting: “While much of the reporting on the precipitous fall in annuity sales in 2016 seems to focus on the impact of the Department of Labor rules announced earlier in the year, the actual causes of the sales decline are likely more complex. Market volatility earlier this year, the election year, and other influences, some of which would actually tend to increase annuity sales, are all having an effect.

A more important question is how the Fiduciary responsibilities will be delivered to the market for indexed annuities. Since these are frequently sold by agents who are not themselves registered reps, the broker-dealer structure for variable products does not universally apply. This could force notable changes in how indexed products are distributed in the future or in the willingness of carriers that manufacture these products to step into the breach to provide support for the fiduciary function. This will be an important element to watch over the balance of 2016.” Here is another perspective on declining life/annuity sales. More from Novarica on the DOL Fudicuary Ruling here.

Fidelity officially launches robo-advisor platform, and the Economist has more to say about AI in general.

Don Metz

Novarica comment by Don Metz, VP of Research and Consulting: “The long awaited promise of AI may finally becoming a reality as significant progress has been made utilizing a new technique called deep learning. Taking advantage of extraordinary advances in computing power and data storage and the increasing availability of large quantities of data, large neural networks are now beginning to learn rather than just process information. This deep learning technique has the potential to enable new disruptive capabilities in the insurance industry, impacting areas such as data analytics, actuarial modeling, underwriting, and predictive analytics.”

Sun Life announces a new partnership with Plug and Play.

Steven Kaye

Novarica comment by Steven Kaye, Associate VP of Research and Consulting: “As noted in our report Buying Innovation: Insurer VC Funds and Accelerators One Year Later, more carriers are launching corporate development programs and venture capital groups, as well as serving as mentors to startups lacking insurance industry know-how. Carriers can also offer startups capital and partner networks, while in turn benefiting from a chance to get ahead of innovations rather than reacting to them. Startups can provide carriers an outside-in view of their processes. Novarica regularly attends events in Silicon Valley, and talks to accelerators, carriers, and private equity and VC firms on an ongoing basis.” More from Novarica on innovation and Silicon Valley

News and Views: The US Treasury’s 2% Rule, Workers’ Comp, Direct Small Commercial, UBI

Novarica’s team comments on recent insurance and technology news

As the Worker’s Comp line reports significant profits for 2015, a class action lawsuit alleges that women receive fewer Workers’ Comp benefits than men for the same injuries.

Jeff Goldberg

Novarica comment by Jeff Goldberg, VP of Research and Consulting: “A recent class action lawsuit alleges that women are being systematically awarded lower disability payments for Workers’ Compensation claims than men for similar injuries. Without getting into the merits of this particular case, it does raise an opportunity to discuss how insurers can use analytics across their business to do more than just optimize pricing and risk selection. Insurers want to thread the needle of remaining profitable while also best serving their policyholders, and no insurer would set out to intentionally under-indemnify a particular group of people. But, if unrecognized societal bias results in individuals making biased decisions at an institutional scale, proper business intelligence would show these kinds of trends and allow a company to put policies in place to rectify them. Whether an insurer has a legal obligation to apply data analytics to identify such trends is a matter for the courts, but–even if the courts say no–it would certainly allow an insurer to make better long term decisions and, just as importantly, improve their service and their ethical standing with clients.”

Forbes profiles another startup trying to disrupt insurance distribution, this time from insurance veterans rather than the startup world.

Martina Conlon

Novarica comment by Martina Conlon, SVP of Research and Consulting: “As we note in our recent Business and Technology Trends report on Commercial Lines, direct small commercial is a market with great potential for a company that can reach small home office businesses and provide a swift and seamless process for potential policyholders to close. This isn’t about coming up with a great new idea for how to sell insurance, it’s about racing to be the first company to provide a really easy, efficient customer experience for small business owners.” More from Novarica on direct online small commercial.

Another insurer has rolled out a UBI based offering, this time based on incentives rather than pure discounts.

Chuck Ruzicka

Novarica comment by Chuck Ruzicka, VP of Research and Consulting: “Answer Financial’s innovative Streetwise Driver club has the potential to energize policyholder’s and change the tone of insurance company conversation in social media. As we note in our recent report on Telematics and UBI, a purely discount-based approach is unlikely to generate substantial market penetration beyond the current, low levels. Some insurers seem to be reaching the same conclusion, but a scheme like this is still essentially financial in nature – the next step will be to find ways for telematics to drive service differentiation and customer engagement.”

The US Treasury has adopted a formula defining a threshold of 2% of community median income for Auto Insurance Affordability,.

Matthew Josefowicz

Novarica comment by Matthew Josefowicz, President and CEO: “While this ruling on affordability has no direct impact, insurers are not unreasonably concerned that, having quantified an affordability problem, the next step would be to address it. Whether this will be through subsidies, mandated rates, or other methods remains to be seen. As we noted in January 2011, once the industry accepted minimum medical loss ratios under the Affordable Care Act, the door would be open to additional intervention in insurers’ operating models in the name of consumer protection and preserving accessibility.”

The IAIS is moving towards a Global Capital Standard, but US insurers are resisting the move.

Mitch Wein

Novarica comment by Mitch Wein, VP of Research and Consulting: “The Switzerland based IAIS has recommended a risk-based capital standard that conflicts with a US Federal Reserve Capital Standard that was proposed last month. The IAIS has 140 member countries, many of which are outside Europe, so this effectively means the US and the rest of the world are moving towards different capital standards. Capital standards drive product mix and type/configuration, since different types of products require different levels of reserves. Additionally, liability valuation has been different in Europe which uses Market Adjusted valuation vs. GAAP in the US. The new proposals compound this difference, adding complexity to global insurers financial accounting and decision making. Global software deployments for PAS and GL will need to take these differences into account. The global patchwork of insurance regulations does not look like it’s getting simplified anytime soon.”

News and Views: On-Demand Insurance, the DOL, Agent Licensing, Big Data

Novarica’s team comments on recent insurance and technology news

On-demand insurance startups are gaining traction.
One company, Slice Labs, has announced a partnership with Munich Re, and
the Chicago Tribune profiles four other startups in the space.

Mitch Wein

Novarica comment by Mitch Wein, VP of Research and Consulting: “Pay per use insurance represents the coming together of big data, which supplies large amounts of data for underwriting in real time with the needs that an on-demand economy requires. For example, a Uber driver may need commercial auto insurance while acting as an Uber driver and personal auto insurance when driving the car otherwise, and another consumer might want coverage only while riding their bicycle or driving their car. The larger trend here is the digitization of the overall experience, enabled by smart phones and telematics, which we are seeing across all lines of insurance.” For more on startups and on-demand insurance, see our reports on telematics and VC funds and accelerators.

A new Florida law will allow college grads to waive the personal lines agent licensing exam if they complete the requisite insurance courses at an approved state college.

Rob McIsaac

Novarica comment by Rob McIsaac, SVP of Research and Consulting: “The recent change to licensing regulations in Florida is the latest attempt to address the aging insurance labor force, particularly among agents. Beyond creating a short term bump in new entrant agents, however, this regulatory change does little to respond to fundamental changes taking place in the industry in terms of how products will be purchased by Millennials (and others) in the future. Personal lines P&C has seen a significant and growing shift toward a more direct to consumer model recently, and other lines will follow. To truly prepare a distribution force for the future, training programs will need to impart an ever-increasing degree of technical sophistication as well as an appreciation of the importance of Omni-channel capabilities that allow consumer to adjust channels of communication at their own discretion.”

Data.world, a startup with the potential to disrupt big data, raised 14 M in Series A funding.

Jeff Goldberg

Novarica comment by Jeff Goldberg, VP of Research and Consulting: “The future of the insurance industry (and most industries) will revolve around getting access to and getting better insight from data. But this means something other than just an insurer doing more with what they have; it will require a combination of private and public data across many different sources. There will eventually be a race by insurers to find new predictive factors from a widening body of available data, even sources that seem tangential to the industry. The investment news about data.world shows that the marketplace values this and is excited not just about data technology but the growth and handling of the data itself. To appeal to the corporate world, solutions and data hubs will evolve to allow businesses to blend their proprietary data with more public sources, and as long as they can maintain both security and ease-of-use it will have a transformational impact on private enterprise.” More from Novarica on data usage here.

The DOL posts technical fixes to the recent Fiduciary Rule.

Rob McIsaac

Novarica comment by Rob McIsaac, SVP of Research and Consulting: “While some carriers continue to hold out hope that action in the courts will delay or modify the ruling, most presume the new regulations will go into force as they are currently written, and that changes will need to be in place by January 1st, 2017, notwithstanding the actual effective date for some elements being in April. This week’s technical correction represents a refinement that was already fully expected by the carriers involved and so has no meaningful impact on the trajectory for implementation. Furthermore, it does not clear up the uncertainty over how indexed annuities will be handled, since they are frequently sold by independent agents or other producers that are not necessarily subject to SEC / FINRA oversight. In these instances, it is unclear where fiduciary responsibility lies, and most manufactures appear unable or unwilling to assume it. The path forward for indexed products will be very interesting to watch.” More from Novarica on the DOL ruling here.

Pokemon GO has seized our nation’s cell phones. How can insurers seize the opportunity?

Harry Huberty

The augmented reality (AR) mobile game phenomenon Pokemon GO seized the attention and smartphone bandwidth of the entire country this weekend, adding upwards of $9 Billion to Nintendo’s valuation with a 23% jump in stock prices.

The game immerses players in an AR version of the real world, where their neighborhoods, parks, streets, commutes, offices, and homes become populated with colorful cartoon monsters. Geotagged locations (usually landmarks and local points of interest) offer in-game rewards to players who visit. A built-in pedometer tracks distance traveled to incubate “eggs” that hatch new Pokemon. The bottom line: users are highly incentivized to keep the smartphone app active at all times, an app that tracks their location and movements to a great degree.

First, the technological capabilities on display are astounding in their detail: Pokemon GO tracks users in real-time to within feet of their geographic location. And since game features require the app to be open to track steps and gain rewards, Niantic (the game’s developer, a Google spinoff) is capturing granular information about where players move, how they get there, and how long they stay. In a world in which insurers are considering using wearables like FitBit to validate claims data, apps like Pokemon GO offer the same data in much greater detail.

There are different ideas on how AR might be used in the insurance industry. Perhaps a form of live-advice that helps claims adjusters (or policyholders filing FNOL) know where to point their phone’s camera to take photos and videos of car or home damage, giving a real-time comparison to the “before” and “after” state. An augmented reality app might also help to prevent accidents, scanning a home or worksite and alerting the user to potential risks. And possibly an insurer will team up with a third-party to devise gamification methods of encouraging safer behavior. If nothing else, the mainstream success of Pokemon GO shows that augmented reality can be made usable and accessible through the device everyone carries in their pockets or purses.

Users are aware that these data are “the product,” and are savvy enough to understand the dangers of giving Nintendo and Niantic permission to monitor them so closely. Despite some discomfort, it’s clear many are willing to trade information about their habits for the fun of playing the game. As many insurers wonder how they might encourage policyholders to turn over automotive telematics data in exchange for rate adjustment, Pokemon GO shows that if the reward is attractive enough, people will bite. There’s another option, too: insurers could simply purchase user data en masse from providers who have developed games and other tools to sweep it up.

Such a tremendous data cache is an attractive target for potential hackers, and hot on the tail of Pokemon Go’s meteoric rise has been warnings of what damage could be done if so much specific, private data—much of it linked to users’ Gmail accounts—fell into the wrong hands. For insurers, it’s an important caution: as they handle an increasingly large amount of new forms of sensitive policyholder personal information—including movement and commuting information that, if lost, is not just an identity theft risk but a potential physical risk—they also grow as an attractive target to hackers. As the exposure of this information increases, so too does insurers’ responsibilities for safeguarding data responsibly.