Weekly Newsletter - 12.18.2024

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PODCAST OF THE WEEK 🎧

EDITOR’S PICK 🎯

The Strategic Imperative of Revenue Enablement📖

Your sales teams are more equipped with training content than ever before, yet adoption and measurable impact are on the decline. Sound familiar?

🚩 The Problem:

• 92% of businesses report less than 30% repeat engagement with enablement content.

• Traditional approaches are failing, leaving teams unprepared and businesses at risk.

🎯 The Solution:

Integrated revenue enablement is changing the game with measurable results:

• ✅ 30 days faster to first deals for new reps.

• ✅ 20% boost in deal velocity.

• ✅ 36 days faster organizational change implementation.

🚀 This is especially critical for industries like MedTech, where rapid adaptation and consistent performance directly impact revenue and compliance.

📖 Download Hive Perform's latest ebook to learn:

• Why traditional enablement fails.

• How integrated revenue enablement drives measurable success.

• The proven strategies to align your GTM teams and unlock growth.

👉 Don’t get left behind—equip your business to win.

INDUSTRY INSIGHTS 🌐

How AI and Tech will Impact Insurers in 2025

2024 proved to be a pivotal year for the insurance industry. U.S. property and casualty insurers improved profitability through substantial rate increases and tighter risk management. However, the talent crisis persisted, with team turnover averaging 13.5%, highlighting ongoing challenges in employee retention. As we move into 2025, several trends are poised to reshape the industry, impacting business models, customer experiences, and workforce dynamics.

2025 promises transformative changes driven by technology and shifting industry dynamics. Operational efficiency will take center stage, with insurers focusing on streamlining claims and underwriting processes to boost productivity and enhance client service. The workforce gap remains a critical challenge, pushing insurers to invest in AI-driven upskilling platforms and flexible work arrangements to retain talent. Meanwhile, AI will disrupt traditional outsourcing, automating routine tasks like data entry and customer service, shifting focus to specialized services, and cutting outsourcing costs by half in the next three years.

Emerging technologies will also help insurers close the $1 trillion underinsured coverage gap. By leveraging data analytics and developing innovative products, insurers can meet evolving consumer needs while seizing new market opportunities.

California’s New Insurance Law: Will It Stabilize the Market?

California’s new law aims to stabilize its home insurance market, particularly benefiting homeowners in fire-prone areas. This legislation allows insurers to raise rates in California’s response to climate change risks, a long-standing industry demand while mandating expanded coverage in high-risk zones. California Insurance Commissioner Ricardo Lara emphasizes that increasing consumer options is crucial to resolving the insurance crisis. However, consumer advocates express concerns about potential steep rate hikes and question whether insurers will genuinely expand coverage.

The plan seeks to entice insurers who have paused issuing new policies to resume operations. Notably, Farmers Insurance plans to increase its monthly new policies, and Allstate is considering a similar move. The regulation is part of broader reforms needed to stabilize the market, with the insurance department aiming to expedite rate hike approvals and finalize rules on reinsurance costs by year-end.

Despite these efforts, skepticism remains. Critics argue that the new rules may allow insurers to use opaque catastrophe modeling, potentially leading to unjustified rate increases. They also question the regulations’ effectiveness in ensuring expanded coverage. Nonetheless, the plan requires insurers to collectively cover 85% of homes in designated fire-risk areas, including urban regions like the Oakland Hills, aiming to address the coverage gap and provide more options for homeowners.

Commercial Insurance Rates Rise Amid Market Adjustments and Stabilization

Analysis US commercial insurance rates rose by 6.1% in Q3 2024, reflecting a market in transition. While sectors like commercial property stabilize, others face pricing pressures. The CLIPS survey highlights these dynamics, showing insurers adapting to evolving risks and economic conditions, with data from 43 insurers representing 20% of the market.

INDUSTRY NEWS 📰

Goldman Sachs Predicts Stable Reinsurance Market with Price Adjustments in 2025

Goldman Sachs forecasts a stable 2025 reinsurance renewal season, with property catastrophe pricing dropping 5-15%. Insurers focus on disciplined underwriting and technology investments. Homeowners insurance profitability is expected to rise, despite challenges in catastrophe-prone states. The commercial market maintains pricing discipline, especially in casualty lines.

FloodPlus: Comprehensive Flood Insurance Solution for Modern Risks

Burns & Wilcox FloodPlus offers comprehensive flood insurance, addressing the rising risk of natural disasters. It provides broad coverage, customizable limits, and simplifies broker processes. Backed by Hiscox, it surpasses traditional policies, emphasizing the importance of proactive flood protection and education for brokers and policyholders.

Cytora and Pelmorex Team Up to Enhance Climate Risk Assessment

Cytora partners with Pelmorex Corp to enhance climate risk assessment for insurers. This integration provides real-time, localized weather data, improving risk evaluation amid climate change. The collaboration aims to streamline insurance processes, leveraging advanced predictive models and AI, reflecting Cytora’s commitment to building a comprehensive data ecosystem for insurers.