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- 12/06/2019
- Machine Learning in Insurtech – a fuzzy and probably approximate science!
Machine Learning in Insurtech – a fuzzy and probably approximate science!We have looked previously at the huge opportunities provided by the rise of Insurtech within the insurance industry (https://www.astoncharles.co.uk/news/blog/insurtech-competitors-or-collaborators). Insurance companies have been notoriously slow to embrace the lucrative changes provided by the rise of technology, with 74% of leading worldwide insurers agreeing that the sector as a whole has been lagging behind in the digital revolution.[i]While Insurtech is wide and far reaching, one particularly poignant area is in the rise of Big Data and the opportunities that speedy interpretation of this can provide.A new concept?Of course, collating, organising and interpreting data to get accurate measurements of risk is by no means a new science. In fact, some 17th Century Underwriters specialised in this field, analysing statistics to quote insurance premiums for merchants and tradespeople of 1690s London.To quote Agile Risk Partners MD, @James Poole’s blog ‘The Big Data Paradox’ (https://www.linkedin.com/pulse/big-data-paradox-james-poole/) of December last year, “Lloyd's of London has got to have been one of THE VERY FIRST big data plays hasn't it?! The principle then, just as now, was that the premiums of the many, covered the claims of the few. And ‘many’ is significant here, because ‘many’ implies that underwriters were using big data as it was then, back in the 1690s!”Data is no more important now, than it was then. However, what the rise of technology has done to information, is create more and offer the potential for almost instant analysis. Statistics that took weeks to study can now be done in seconds, thanks to the rise of machine learning and Artificial Intelligence. Data scientists are now able to program computers to capture data from a vast range of different sources; from meteorological conditions, to geographical and historical data; as well as person specific data ...- 12/06/2019
- Money is Not Enough in Search for new Financial Services Talent
Money is Not Enough in Search for new Financial Services TalentA worrying trend within financial institutions indicates that bright young people are less and less inclined to enter the financial services market – with new blood tending to opt for other types of workplaces and industries. Recent statistics suggest that 65% of people would not consider working in the financial services market. There are a number of factors in play, but one of the overriding issues appears to be with the image of the sector - with almost half of young people under the impression that working in financial services is “boring.”[i]The percentage of 22 to 29-year olds with administrative jobs in financial services has dropped from 3.1% in 2011 to 2.7% in 2017. [ii]In addition, it would appear that of the 16 to 24-year-olds who have seen fit to enter the world of financial services, a huge 55% have parents who have or do work in the industry. This indicates that having a parent in financial services either encourages young people to enter the sector or gives them an edge when it comes to accessing it.[iii]This is a concerning realisation, with industry experts believing that the drop in new blood within the sector could have serious knock-on effects. The lack of interest from young people who currently have no link to financial services, means that the talent pool is becoming narrower and less diverse.There are a number of ways that new talent can be attracted into the industry. It will require some strategy and effort on the part of financial services companies but will reap dividends in terms of the future of the financial services sector.An interesting ...- 17/05/2019
- Insurance Benefits as Volvo Tackles Drink Driving
Insurance Benefits as Volvo Tackles Drink Driving In their continued efforts to maintain a reputation for producing the safest cars in the world, Volvo have announced plans to reduce drink driving - by manufacturing cars that can detect and respond when a driver has been drinking alcohol. The cars will be designed to react to a drink driver in one of a number of ways, with the aim of making the vehicle, driver and other road users safe.In the UK an estimated 230 people were killed in accidents involving a drink driver in 2016; a number which accounts for around 13% of all road traffic fatalities in that year. Over consumption of alcohol also causes approximately 5% of all reported car accident casualties.[i] Therefore, the prospect of eradicating drink driving related injury and fatalities is enormously significant.While the devastating human cost of drink driving remains the main motivating factor behind the push to stamp out this dangerous habit, there is also a financial cost to driving under the influence of alcohol.Insurers pay out figures in the millions to cover the financial claims resulting from drink driving accidents. While many insurers have clauses that exclude pay outs to drivers who are under the influence of alcohol, the companies still remain legally obliged to cover any third-party costs; which could run into the hundreds of thousands in the event of very serious injuries. While they may attempt to recoup these costs from the driver, the reality is that in all likelihood, the insurer will remain out of pocket. For insurance companies, the financial benefits of a reduction in drink driving are huge.“Big Brother” or big benefit?The technology would not only target drivers that are drunk. The system involves cameras and sensors that will be able to assess a number of types of erratic driving. This means that other problems that cause dangerous driving; such as driving under the influence of drugs, excessive tiredness and driving while ...- 03/04/2019
- Insurtech: Competitors or Collaborators?
Insurtech: Competitors or Collaborators?Just as Fintechs have disrupted the financial industry in recent years, Insurtechs are now making a very visible impact on the insurance market. Grappling with these new companies is vital to the survival of existing, traditional insurance providers. One survey suggests that as many as 74% of incumbent insurance companies accept that Insurtechs are a challenge to them. In spite of this, only 28% are looking at the possibility of partnering with these new companies, and less than 14% are involved in Insurtech programs.[i] These are worrying statistics, as a refusal to engage with these emerging technologies could spell the end for traditional incumbents. However, with foresight and a willingness to change, insurance companies can benefit from the products and services of Insurtechs, utilising them to complement, promote and extend the services that they already provide. Working with these companies is a way to not only survive the disruption caused by the rise of Insurtechs; but to grow and develop through strategic collaborations. Insurtech companies provide innovative products that are able to improve on every part of the value chain within the insurance sector. Insurtech can also help to identify and then market to gaps in the insurance market, opening up revenue streams that were not previously available. · DistributionMcKinsey Panorama conducted an analysis of Insurtechs, using their own database which holds records on over 500 Insurtech companies. They suggest that 37% of Insurtechs are involved with the distribution of insurance, with 75% of these having a specific emphasis on the enabling of distribution; such as allowing easy access and simple comparison of products for consumers.[ii]This allows existing companies to promote their products and services in a marketplace that they may not otherwise have had access to. There is opportunity for companies that are smaller or ...- 12/03/2019
- 133% Increase in Compensation for Financial Clients
133% Increase in Compensation for Financial ClientsThe Financial Conduct Authority have announced plans for the Financial Ombudsman Service to increase the amount of compensation that they can demand a firm pays to a client. It is set to more than double the limit – from the current £150,000 to £350,000 in April 2019. The FCA has recently completed a consultation on the proposals.This new amount will only apply to transactions that take place from April 2019. However, they are proposing that the amount be increased to £160,000 for claims made about business that took place prior to April 2019. In addition, both limits will increase annually in line with inflation from 2020 onwards.Why the change?There are a number of reasons that the FCA believes the changes are necessary. Many clients (which includes those with pension investments) may be set to lose far more than the £150,000 that is currently the limit if an investment goes wrong. Each year, around 2,000 complaints are upheld by the FOS that are above £150,000 in value.[i] Almost 75% of these claims are between £150,000 and £350,000. [ii] Currently, the FOS can request that companies pay the complete amount but cannot enforce any amount above the £150,000. While some companies do choose to accept the larger amount and pay what is requested, this can create a discrepancy between large companies that can afford to pay the extra and smaller companies that may not.While clients can take companies to court for the larger amount, the FCA points out that many clients may be unable to afford to pursue legal action. In addition, a complex drawn out legal process may not incentivise companies to keep standards high in their interactions with clients. They believe that an easy recourse to compensation through their service is far more compelling in terms of keeping up standards.[iii]OpportunitiesWhile this increase in the limit may initially appear concerning to financial service companies, it would be a mistake ...- 12/03/2019
- Cheltenham Gold Cup – Free Sweepstake
Once again, we’re running our annual Gold Cup competition. Simply, make sure you follow the Aston Charles company LinkedIn page, like the relevant status and name your preferred horse- a full list is below. The winner gets £50, 2nd place £30 and 3rd £20. If two people pick the same horse, we will draw names from a hat. For full T&C’s contact Richard Jones – 077250 41848 AL BOUM PHOTO ANIBALE FLY BALKO DES FLOS BELLSHILLBRISTOL DE MAI CLAN DES OBEAUX DEFINITLY RED DOUBLE SHUFFLE ELEGANT ESCAPE FRODON INVITATION ONLYKEMBOY MIGHT BITE MONALEE NATIVE RIVER PRESENTING PERCYROAD TO RESPECT THISTLECRACKYALA ENKI SHATTERED LOVEGood luck!!...- 07/02/2019
- Three Ways that Millennials will Shape Financial Services by the Year 2030
Three Ways that Millennials will Shape Financial Services by the Year 2030 Today’s young people in their 20s and early 30s are about to have the highest spending power of any generation.[i] These are the millennials; people who reached adulthood in the early 21st century and are now approaching the height of their careers, buying houses and starting families. They entered their employment in the midst of the financial crisis and are growing up in a world full of environmental, economic and social concerns. Their voice will have a strong impact on the direction in which many industries will need to move and the financial sector is no exception. In order to stay competitive in a crowded market moving towards the year 2030, financial institutions need to ask, “What do millennials really want?”1) Digitisation and Artificial IntelligenceOver the past decade, disruptive technology has ushered in huge changes in financial services, with a move to digitisation, mobile banking, online lending and personalised marketing. There is no indication that millennials will be slowing down the rate of technological advancements. Indeed, statistics show that millennials spend an average of 25 hours a week on the internet, with one in three people in this age category making at least one weekly purchase via their computer (as well as many via smartphones)[ii].Millennials are a generation that expects instant results. Recent years have seen the ability for an individual to make on online purchase in the morning and have it delivered in the evening. Speeding up processes and being convenient will be vital to appealing to the customers of 2030. In addition, clients will want to see an increasingly personalised service. Advances in AI are making this possible, with marketing and products being tailored to fit an individual, rather than grouping people together by demographics such as age, income or career. 2) Social responsibilityIt is ...- 15/11/2018
- Insurance – The Benefits of Chartered Status
Insurance – The Benefits of Chartered StatusInsurers and insurance brokers are battling a long-term problem in the market; that of the lack of customer trust. Recent polls suggest that a mere 53% of people trust insurers. [i] This is a worrying statistic for insurance brokers, who are doing everything they can to boost their reputations and improve their name for integrity and high standards. Now is a good time for insurance brokerages to start asking whether acquiring Chartered status for their company could be beneficial; bolstering their reputation within a sector that appears to be generally mistrusted. However, with the significant time and resources required to be eligible for Chartered status, it is reasonable for companies to ask whether there will be a substantial positive impact on the business. There are a number of ways in which Chartered status can have an impact:Business reputationA Chartered status ensures that the business and its employees are always held to the highest standards in terms of ethical practice, professional development and knowledge. This elevates the company reputation for professionalism, potentially drawing interest from clients that may otherwise have looked elsewhere.Fostering client trustA recent poll found that 66% of consumers had an expectation that brokers holding Chartered status were likely to be better qualified, more professional and to be more strictly regulated. [ii] Having a Chartered status can make customers see the company as more reliable, which is a huge advantage in a climate in which consumers are wary of trusting insurers. Employing the bestAs a specialist recruitment agency, Aston Charles finds that for an insurance brokerage, holding Chartered status can be a benefit when it comes to recruitment, as it shows prospective job applicants that the business is a reputable brand that has gone through the rigorous approval process of the Chartered Insurance Institute (CII). Individuals will know that their ...- 15/08/2018
- Are Mortgage Brokers Missing Out on Millions?
Are Mortgage Brokers Missing Out on Millions? Four Strategies for Winning the Custom of First Time BuyersBuying a house, particularly for the first time can be a daunting prospect. Credit checks, forms, and the huge variation of mortgage products and different lenders can be overwhelming.In spite of this, a mere 28 % of first time buyers intend to fund their house purchase using a mortgage found through a mortgage broker, with 46% intending to arrange their mortgage directly with the bank. However, at some point in the house purchase process, this attitude changes, with the percentages becoming 47% and 32% respectively.[i] In other words; the process of the house purchase makes many people realise the value of the mortgage broker over and above finding their own deal.This still, however, means that 53% of first time buyers are not using a broker, representing a market worth millions of pounds. There is plenty of opportunity here for mortgage brokers to win over first time buyers, saving these new customers huge sums in overly expensive mortgage deals in the process. The importance of a mortgage brokerThere are so many advantages in employing a mortgage broker early in the process of purchasing a property. Helping first time buyers to understand the benefits is the first step in winning their custom.· It is estimated that one third of customers do not get the cheapest mortgage available.[ii] Knowing the market well, brokers can access any new deals as they become available, as well as being able to analyse each customer’s individual circumstances and the best deal that they can get, giving clients the confidence that they are getting the most cost effective mortgage for them.· Many mortgage brokers also offer advice on the house buying process; from suggestions on paperwork, to recommendations about house surveys and insurance. This reduces the stress and worry ...- 18/07/2018
- Financial Planning Services: Make it to the Top Using Seven Strategic Approaches
Financial Planning Services: Make it to the Top Using Seven Strategic Approaches A recent poll suggests that a mere 8% of people choose to get professional financial advice when making important financial decisions.[i] However, the income that professional advice can generate is in some circumstances, almost 6000% of the initial cost.[ii] These statistics indicate that many people may not be aware of the benefits of financial advice. There is huge scope for marketing financial services to a sceptical generation. The UK needs financial advisors with motivation, drive and diligence to offer helpful, unbiased advice to clients. These advisors need a personable character that can win over uncertain clients who are looking to secure a worry-free future with wise pensions and investments.The financial services sector needs the best – and for financial advisors keen to optimise their performance, asking what can be done to get to the top is a key question. Here are seven of the most important things to consider when pursuing excellence within financial services.Know your target marketTo get to the top it is important to identify the prospective clients that you want to work with and learn everything you can about the concerns and issues that they may have - and how to resolve those issues. Become an expert in your client’s industry field. Be visible to them, by attending networking events, conferences and trade shows. It may be helpful to work within a niche industry (or even several niche industries) as you will be able to become expert in those fields, earning a name for yourself in your specialism.[iii] Earn your client’s trustExpecting a client to trust you with a large portfolio prior to earning their trust is unrealistic. In many cases, you will need to put in considerable effort before seeing a penny from a client. Consider this an investment and work hard to evidence your usefulness to top clients. 47% of clients chose their financial advisor because ...