It’s exciting times in commercial insurance industry. The technology explosion has provided the right opportunity for commercial insurers to focus on the customer and innovate. Many believe that the pace of change in the industry is already at an unprecedented level and is only going to increase further. The rapid proliferation of commercial InsurTechs has helped fuel disruptive changes. The innovation is all around, be it in terms of distribution, product, underwriting or customer service. But some of these innovations, listed below, will have a long lasting and significant impact that will change the game fundamentally.
1. Shift towards risk prevention rather than cure:
The growth of IoT (Internet of Things) presents an incredible opportunity for insurance companies to shift its focus from loss indemnification to risk prevention. Insurers are now able to alert customers of potential loss before it occurs by analyzing data streamed through the devices. Many insurance companies are offering discounts to customers who install smart devices that will give organizations and their insurers control over major risks.
But it isn’t just in devices and software that are being promulgated to clients. The analysis of data also provides insight into changes that can be made in organizations, as well. Many insurers are providing written processes and procedures that organizations can use to provide both methods and training to their employees. This is being done to help ease the occurrence of events that could be prevented.
2. Growth in Usage based insurance products:
The rise of the sharing economy as well as the increasing demand for personalized insurance experience by the client has led to a preference for on-demand usage based insurance products. Traditional insurance products fail to address the new landscape as assets are increasingly shared rather than owned. Therefore, a shift toward insuring individuals as users of assets over short periods is becoming increasingly common. Customers will benefit from more customized coverage as well as accurate premiums reflecting their unique risk profiles.
3. Digital and On-demand Customer Service:
Business Customers are increasingly demanding simplicity, transparency and speed in their transactions with businesses. Proliferation of smartphones and RPA, and growth in user experience technology have facilitated the emergence of better information, transparency and convenience – all through a touch of a button. Policyholders are now treated with digital interaction methods such as online portals, virtual assistants / chatbots, digital market place, cognitive claims intake and even drones. Insurers are able to deliver greater customer experience through these on-demand services.
Blockchain and artificial intelligence also promise to have a significant influence on the future of the industry; however, their impact will take longer to materialize.
Contact us to more about the innovations in Commercial insurance and how you can leverage these innovations for better customer experience. You can call us on 800-903-8690 or 972-293-2139 or contact us online here.