Property and casualty insurers are facing major disruptions in terms of sky-rocketing customer expectations, a talent drought and different uses of technology. But while this may be causing some turbulence, a new paper by Insurance Nexus says forward-thinking carriers will see the current times as an opportunity rather than a barrier to success.
Advanced technology is driving insurance carriers towards greater efficiency and accuracy in their analyses, said the paper. On top of that, the ability to use unstructured, external data is rapidly improving predictive capabilities – all factors that will positively impact carriers’ profitability.
Customers looking for personalized and fully digital services
From a policyholder point of view, they are looking forward to a seamless customer service channel geared to the modern consumer, while carriers that can implement personalized and fully digital services will see worthwhile returns, particularly among the younger demographic.
“As carriers’ ability to predict and actually reduce risk increase, policyholders should invariably see lower premiums and less risk to themselves financially, materially and emotionally. As value to customers increases, we can expect acquisition, retention and brand loyalty to similarly rise,” states the paper.
Carriers can train workers
A problem for the industry is the lack of skills in the workforce. But Insurance Nexus says current times have produced data scientists who understand the nuances of insurance and can be trained and exposed to unfamiliar territory.
“Ultimately, it is those who view disruption as an opportunity who will thrive. Those resistant to change will soon find themselves unable to compete with the more efficient, personalized and profitable offerings in the market, and many believe this moment in time to be ‘now, or never’.”
