Few industries will be impacted by the compounding effects of climate change as severely as the insurance industry. Extreme climate-related disasters have increasingly dominated the media. Some recent climate data has indicated that expansive wildfires, hurricanes, extreme flooding and prolonged droughts are negatively affecting more and more people. By taking timely action, the insurance industry can help lead change to combat the growing regularity of catastrophic events.

The pandemic has created some extraordinary market conditions throughout the U.S. economy. As people have spent more time at home, the demand for single-family homes and the number of home renovation projects have increased. But what happens when costs of parts and labor for repair become inflated? For submitted home insurance claims, insurance costs will likely be significantly more in 2021 than a similar claim last year.

In the wake of the murder of George Floyd last year, Pinnacle decided to proactively support and advance diversity, equity and inclusion (DEI) at our company, in our profession and in our communities. Collectively, the sentiment of the firm was towards action rather than simply parroting words to make us feel good about ourselves.

Efficiency and accuracy have always been big objectives of business, specifically efficiency in customer service and work processes. Artificial intelligence (AI) has proven helpful for businesses looking to accomplish those objectives and, as a practice, has moved to the forefront of many professional fields, including insurance. AI’s growing implementation has the capacity to reshape the way we experience insurance – and not just in expected ways.

In this era of “Big Data,” we have access to more records and connected data than ever before. New programming languages and applications are being developed that promise to unlock many of the world’s challenges, such as showing businesses how to market directly to the most profitable consumer groups or helping healthcare groups eradicate complex genetic diseases. However, while this increase in records and connected data can solve many challenges, it can also create difficulties when moving from the research stage to the implementation stage.