Disrupting technology, increasing competition and economic pressures have made property insurance business go beyond traditional strategies.
The property insurance business is undergoing a transformation. In this transformation, some people will become leaders, many will fall behind, and another group may disappear from the market. The market continued to break in 2016. What is the power to disrupt the market? How it affects processes and stakeholders has become a hot discussion. Let us now delve into it.
First of all, the damage caused by innovation and new product development. Innovation is a great leveler and destroyer. Look at the potential of the Internet of Things to change the insurance business. The Internet of Things is adding new tasks to insurance companies. Wearables, cars, transmitters, medical equipment, security systems, doors, lights, etc., are providing insurance companies with market segments and creating new price models for the P&C market.
The emergence of an asset-sharing shared economy is creating an opportunity for property and casualty markets. This means that insurers need to create new pricing models to mine these assets.
Is the agent replaced?
Digital technology is gaining a foothold in mature property and casualty markets. Before digital threats, insurers hire agents to educate customers. However, the growing digital phenomenon is gradually eliminating the key role that agents play as a medium between insurance companies and customers. For example, Google Compare helps customers compare different products online, and customers can purchase products directly from insurance companies. This may be related to premiums, as commissions paid to agents can be used as discounts for customers.
Due to digitization, P&C customers expect personalized services such as access anytime, anywhere. This makes customers happy, millennials become the target, but also open up the risks of network security and hacking. These risks may affect the reputation of the insurance company. Today, IT solutions come with an additional embedded protection layer to protect data assets.
Increasingly connected car and mobile telematics applications are redefining traditional price models. Traditional models are being replaced by insurance based on usage (UBI). This will enable the driver to get a discount on driving behavior. The lower the risk, the lower the premium. This trend provides mobile app providers with an opportunity to offer advanced features in mobile telematics applications. User-friendly features such as gamification and ancillary services such as roadside assistance are a few examples of citations.
Underwriting involves the accurate and accurate collection of information. Big data is driving the development of the property and casualty insurance industry. Big data technology helps enable underwriting to effectively conduct crime statistics and risk assessments, making the underwriting process more accurate and benefiting all stakeholders.
Personalized Customer Experience
P&C is competitive and cost sensitive. It needs to allow customers to communicate through personalized communication, careful assessment and quick claims. A personalized customer experience can retain customers. As a result, insurers need powerful mobile solutions to initiate policy releases and claim processing without having to go to the insurance company in person.
Like or dislike it, insurers can't avoid cloud computing keeping their mobile phone business consistent with customers who like to visit. Therefore, insurance liquidity is the key to property insurance companies. Critical brokerage, claims, underwriting, reinsurance and accounting are required through solutions to continuously accelerate customer assessments and claims at a lower cost. The bottom line here is to reduce the processing time of claims. This will help increase customer engagement by providing multi-channel delivery to customers. In addition, it makes it easy to set up appointments, report losses, and receive notifications when needed.