Five ways to leverage the rapid digitization of insuranceBy Neil Spector | October 15, 2020
The insurance industry has been undergoing a digital transformation for several years. But this year’s pandemic has accelerated the pace. Now, more than ever, insurers are turning to virtual technology, robust analytics, and artificial intelligence to help serve customers throughout the policy life cycle.
At Verisk Velocity, I shared some thoughts on the digitization of insurance and spoke with leaders of a homeowners insurance startup, a super-regional commercial insurer, and a behavioral data intelligence company.
Below are five key themes that emerged:
- Updated analytics can help address the growth of home improvements: In recent months, a growing number of homeowners have decided to invest in home renovations, from do-it-yourself projects to swimming pools. But customers often forget to notify their insurers and end up without enough coverage. Analytics from building permit data can help insurers identify changing property risks and reach out to customers who may be underinsured.
- Emerging data sources can support risk mitigation: Many insurers are beginning to use emerging data sources to be more proactive with customers and support their efforts to mitigate risks. Aerial imagery can locate problems with a roof before significant damage occurs. Internet of Things devices attached to plumbing can detect water leaks before a home becomes flooded. Such information can be used by insurers to enhance customer service and reduce claims.
- Analyzing the customer journey can yield valuable insights: Marketing data from mobile devices indicates an increasing number of consumers used comparison websites in recent months to shop online for auto and home insurance. Analyzing those consumers is becoming more important to insurers as they try to understand more about potential insureds, and how and when to connect with them.
- Virtual collaboration can be enhanced with traditional connections: The pandemic has led many insurers to virtually serve customers and collaborate with brokers and agents. This virtual collaboration includes remote tools for property inspection that can aid in underwriting and claims. But COVID-19 has not stopped insurers from finding traditional ways to stay connected. Some insurance professionals are sending care packages to those they work with to help maintain relationships.
- Remote work has changed perspectives on innovation: The insurance industry has sometimes been considered resistant to change. But the growth of remote work has begun to change the mindset of many industry leaders, who never thought they’d be able to sustain working from home for so long. Dogs barking and children running in the background of video calls have helped humanize work environments, making people more comfortable with taking initiative and making mistakes. At the end of the day, nothing is better to spur innovation than being together with your colleagues. While remote work will definitely increase after the pandemic passes, it will still be valuable to innovate through in-person collaboration.
Learn more about these themes and others by watching the session on-demand at Verisk Velocity.
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