Email Cyberattacks Surge 24% in 2023
The risk of email-based cyber threats has escalated sharply this year, with claims related to email attacks increasing by 24%, as reported by cyber insurance provider At-Bay. Larger businesses—particularly those with over $100 million in annual revenue—experienced the highest surge, recording three times the rate of email-related claims compared to smaller companies with less than $25 million in revenue. The sectors most affected in 2023 and early 2024 include manufacturing, finance, and law. “Email is a universal communication tool, making it an accessible target for cybercriminals,” explained Adam Tyra, At-Bay’s General Manager of Security Services. “While many security tools are focused on preventing ransomware, attackers are increasingly leveraging victims’ email systems to bypass these defenses.” Notable Findings from At-Bay’s 2024 Cyber Report: In today’s digital landscape, email security is vital. “Businesses need robust email protections and fraud detection tools,” added Tyra. Many solutions need regular updates to stay effective as cybercriminals advance their tactics. At Skyscraper Insurance, we understand these evolving threats and prioritize sophisticated cyber risk solutions to protect our clients. #WeShareYourVisionForABetterTomorrow
Top 10 U.S. Cities for Wealthy Insurance Client Prospecting
With the 2024 U.S. general election behind us, inflation and economic factors remain in the spotlight as influential drivers of the national landscape. Despite some signs of slowing, consumer prices in the U.S. and globally continue to trend upward in key areas such as groceries, clothing, and car insurance. According to recent data from the Bureau of Labor Statistics, inflation eased to 2.4% in September. Yet many Americans, especially those in working and middle-income brackets, still face financial pressures. Nonetheless, the U.S. remains a premier destination for millionaires globally, with around 22 million residing in the nation, representing 38% of the world’s millionaire population, according to UBS’s Global Wealth Report 2024. A recent study by property management firm Evernest highlights the wealth distribution in major U.S. metropolitan areas, noting that the country’s richest cities are spread across diverse regions—not just in traditionally affluent hubs. Evernest analyzed key indicators across 45 metropolitan areas, including income levels, cost of living, homeownership rates, and the percentage of households with $1 million or more in investable assets. In the insurance industry, individuals with $1 million+ in investable assets are often referred to as “high-net-worth” clients. These clients require a more personalized and consultative approach in their insurance needs, which extends beyond standard policies to protect unique assets and lifestyle choices. Diane Delaney, executive director of the Private Risk Management Association, recently emphasized this in an episode of Insurance Speak, underscoring the importance of a human touch and deep understanding in catering to these clients. For insurance professionals, these top cities present an invaluable opportunity to meet the needs of high-net-worth clients with customized, expert solutions.
Around the P&C Insurance Industry: Key Acquisitions and Expansions
Skyscraper Insurance Advisory: The Risks of Drowsy Driving and Its Insurance Impact
At Skyscraper Insurance, we understand the risks associated with drowsy driving and its significant impact on both road safety and insurance costs. The latest findings emphasize the importance of alertness behind the wheel to prevent accidents and avoid potential financial repercussions. The Danger of Drowsy Driving Drowsy driving poses a serious risk, with more than 10% of drivers admitting to falling asleep at the wheel each year. This trend leads to approximately 1,550 deaths, 71,000 injuries, and $12.5 billion in losses annually, according to the National Highway Traffic Safety Administration (NHTSA). Factors contributing to drowsy driving include: Insurance Consequences for Drowsy Drivers Being cited for drowsy or reckless driving can result in rate increases of 73% on average, with certain states imposing even steeper hikes. In California, for example, drivers can face rate increases of up to 177%. Even without a citation, falling asleep and causing an accident can lead to a 30% increase in premiums. Reducing Risks and Staying Protected To stay safe and protect insurance rates, drivers should: At Skyscraper Insurance, our mission is to keep you informed and protected. Stay safe, stay alert, and remember that responsible driving leads to safer roads and stable insurance premiums.
Insurance Distribution Technology Market Set to Reach $50B by 2029
According to a recent report by ResearchAndMarkets.com, the U.S. insurance distribution technology market is projected to grow to over $50 billion by 2029. With a compound annual growth rate (CAGR) of 16.4% from 2024 to 2029, the market has accelerated from its 2023 valuation of $20 billion, reflecting a significant shift in the insurance landscape. In comparison, the overall U.S. insurance distribution market is anticipated to grow at a slower CAGR of 8.24%. The driving force behind this growth is a rising demand among younger consumers for modern, tech-driven insurance solutions. Key Drivers and Emerging Trends Several factors are fueling the surge in insurance distribution technology, including: The report highlights Property & Casualty (P&C) insurance as a sector expected to see the most significant growth due to increased adoption of technology and analytics that tailor products to consumer preferences. Additionally, commercial insurance distribution is set for rapid expansion, driven by innovations like APIs, push notifications, and scalable/self-learning models. The Future Role of Cloud Computing Cloud computing will be a game-changer in the coming years, improving internal processes, facilitating new customer acquisition, and fostering policyholder loyalty. However, challenges such as security risks and infrastructure limitations may pose obstacles to the rapid growth trajectory of insurance distribution tech.
Strengthening Organizational Culture: Key to Success in Insurance
In the insurance and claims sector, business culture is not just a “nice-to-have” but a critical driver of success. Culture influences every aspect of a company—from employee satisfaction and engagement to client relationships and sales. While a toxic culture can be easy to spot, building and sustaining a strong, positive culture requires intentional effort, especially for companies with an international presence. What Defines Business Culture?Business culture encompasses the “why” and “how” of operations rather than simply the “what.” It’s the mission, values, and purpose that influence daily actions and shape interactions among employees, clients, and stakeholders. For instance, McLarens, a global claims management firm, prioritizes fairness and independence in its operations, fostering a collaborative environment that emphasizes professional expertise. Three Steps to Building a Strong Culture Building a Culture for Long-term Success A strong, intentional culture is essential for sustained success. In a globalized environment, aligning culture with business goals can enhance performance and employee well-being. By defining values, empowering employees, and implementing actionable plans, insurance firms can foster a culture that not only attracts talent but also drives enduring success.
The Insurance Industry at a Crossroads: Embracing AI in the Age of Modernization
A recent industry survey indicates that insurance carriers are at a transformative juncture, with substantial AI adoption projected over the next two years. According to the 2024 Earnix Industry Trends Report, 70% of global insurers anticipate deploying real-time predictive AI models within this timeframe, although currently, less than 30% have adopted this technology. The operational impact of AI is expected to triple within a year, emphasizing the sector’s recognition of AI’s value in fostering innovation, enhancing operational efficiency, and sharpening its competitive edge in a rapidly evolving market. Yet, the road to AI integration is not without obstacles. Nearly half of insurers report delays in modernizing legacy systems, underscoring the industry’s struggle with “technological debt.” These outdated infrastructures can hinder insurers’ ability to optimize product development, implement AI-driven analytics, and introduce profitable pricing models — all crucial in an increasingly data-driven landscape. Furthermore, regulatory demands continue to rise. Over two-thirds of insurers expect to increase their regulatory compliance efforts in the coming year. This heightened focus appears driven by recent compliance breaches, as over half of the surveyed insurers disclosed facing fines or issuing refunds due to regulatory missteps. Operational speed remains another significant hurdle, with nearly 60% of insurers requiring over five months to implement rule changes, a timeline that could impact their responsiveness to market shifts. Compounding this challenge is the complexity of automated underwriting environments, with 71% of respondents describing their current systems as intricate, managing numerous rules and processes. Internal collaboration also suffers from the constraints of legacy systems, with fewer than a quarter of insurers reporting consistent team collaboration. Over half of the respondents view their current tech stack — comprising legacy systems, IT platforms, and third-party applications — as an impediment to seamless collaboration and innovation. Macroeconomic factors such as inflation, climate change, cybersecurity, and economic uncertainties add layers of complexity, prompting insurers to expand their reliance on third-party data sources. Over the next three years, many insurers plan to invest further in data technologies, including IoT, machine learning predictions, telematics, and blockchain. These findings illustrate the industry’s awareness of AI’s transformative potential, yet underscore the need for a holistic modernization of core systems and processes. Insurers who successfully navigate these technological and operational challenges stand to gain a significant competitive advantage in a rapidly evolving market landscape.
InsurTech Priorities for 2024 and Beyond
As we head into 2024, the tech sector is experiencing a shift in focus amid an evolving market landscape. The past few years saw a talent boom with a surge in funding and hiring, leading to widespread workforce changes known as the “Great Resignation.” But recent economic conditions have altered the playing field significantly, with over 86,000 tech layoffs reported in 2024 alone. Now, companies must balance the high cost of operations with new challenges in talent retention and risk management. People, Prices, and Pressures in Tech Managing cash flow has become a top concern for many tech companies. Rising costs and inflation are making it challenging for organizations to sustain growth, with 59% of tech leaders reporting struggles in managing these financial pressures. Interestingly, only 20% are prioritizing funding this year, while 43% are concentrating on increasing revenue through enhanced sales initiatives. This pivot towards financial stability reflects a broader industry sentiment, with over three-quarters of tech firms expressing optimism about market recovery and the potential for growth in product development and automated processes. The Path Forward: Enhancing Risk Management To remain resilient, many tech companies are re-evaluating their approach to risk. While two-thirds of organizations have adopted new risk mitigation strategies, a significant portion is still determining the best path forward. Here are four key strategies that tech firms can consider to strengthen their risk management framework: Looking Ahead: Opportunities Amid Uncertainty Despite current challenges, tech companies are positioning themselves for future success. Economic conditions are stabilizing, interest rates are anticipated to ease, and revenue growth is expected to improve retention rates. By enhancing risk management practices and focusing on strategic growth areas, tech companies can navigate uncertainty with greater confidence and lay a strong foundation for sustained innovation. Ben Jennings, CEO of Embroker, highlights the critical role of innovative insurance solutions in supporting businesses of all sizes and driving future growth in InsurTech. With over 25 years of industry experience, Jennings brings a wealth of expertise in aligning technology and insurance to meet the evolving needs of modern businesses.
California’s Cannabis Growers Struggle to Find Insurance Amid Rising Wildfire Risks
In California’s wildfire-prone regions, cannabis farmers face unique challenges in securing insurance for their high-value operations. Cannabis, despite its booming $5 billion industry within the state, remains federally classified as a Schedule I substance, preventing many conventional insurance providers from covering the crop. The Wildfire Risk Impacting California’s Emerald TriangleIn areas like Humboldt, Mendocino, and Trinity counties — collectively known as the Emerald Triangle — cannabis cultivators face increased risk. With wildfire seasons growing longer and more intense, even established insurers like State Farm are withdrawing from the market, leaving properties uninsured and at risk. Farmers like Hannah Whyte, whose farm produces up to 1,600 pounds of cannabis annually, have become “uninsurable” under traditional and state-created plans due to federal restrictions. The FAIR Plan’s Limited Options for Cannabis FarmersCalifornia’s FAIR Plan, established to help provide coverage for high-risk properties, excludes cannabis farms, citing federal restrictions. Cannabis growers must either forgo insurance altogether or attempt to cover their farms in other ways — a choice that presents significant risk, especially as wildfires continue to escalate. Regulatory Hurdles and Cost ConcernsEven where insurance is available, premiums for cannabis growers are notably higher than other agricultural sectors, and policies may require additional, costly coverage beyond wildfire protection. Michael Polson, of UC Berkeley’s Cannabis Research Center, highlights that these challenges often stem from policy restrictions on where cannabis farms can be located, placing many within high-risk zones. A Call for Change in Cannabis CoverageAlthough regulatory steps, such as California’s 2022 law allowing insurers to provide cannabis coverage without facing criminal charges, have improved the landscape, the demand for further reform persists. Former insurance commissioner Dave Jones has advocated for expanding the FAIR Plan to include cannabis-related risks, noting that these farmers are essential contributors to California’s economy. As Skyscraper Insurance strives to support a diverse range of clients facing unique challenges, these issues underscore the importance of continually adapting our insurance solutions. At Skyscraper, we aim to work closely with top underwriters and industry leaders to craft comprehensive solutions, even as the landscape of cannabis insurance evolves.
Election Day in the U.S.: Business Preparedness and Insurance Considerations
As Election Day unfolds, businesses across the U.S. may face uncertainties due to the political climate. The Council on Foreign Relations (CFR) notes that election results could lead to heightened community unrest, especially if the outcome is not immediately clear. During times like these, Skyscraper Insurance stands ready to help businesses navigate potential risks, offering insurance guidance that adapts to both the regulatory landscape and the unique concerns of each business. Potential Risks and Insurance Coverage:Given recent events, some businesses are evaluating their policies to ensure coverage for unexpected risks. At Skyscraper Insurance, our clients benefit from our experience in addressing varied claims, particularly in commercial property and liability coverage that includes scenarios such as riots, vandalism, and civil commotion. Many commercial property policies include protection for physical damages and even business interruption losses when caused by covered events, helping businesses to maintain operations even in uncertain times. Preparing for Workplace Dynamics:Election results can sometimes lead to heightened emotions within the workplace. Skyscraper Insurance emphasizes the importance of clear policies and insurance solutions like Employment Practices Liability Insurance (EPLI), which can cover specific claims related to workplace disputes, ensuring that businesses are prepared to handle any challenges professionally and equitably. Skyscraper’s Comprehensive Approach:As always, our mission is to be proactive and prepared. We’re committed to guiding our clients through risk assessments and policy evaluations to ensure they have the right coverage in place for any eventuality. In an unpredictable world, Skyscraper Insurance provides stability, security, and the expertise to help our clients feel covered in every season. If you have questions about your current coverage or would like to explore new options to fit today’s changing world, reach out to our team today. At Skyscraper Insurance, We Share Your Vision for a Better Tomorrow.