In response to ever-changing industry conditions and market forces, insurance carriers are beginning to take advantage of the potential that advanced data will bring to the P&C insurance industry. Insurance companies are moving away from product-centric business and focusing on customer-centric business development. The availability of niche third-party data, flexible technology platforms, Internet of Things (IoT) and blockchain have significantly streamlined specialty lines management by improving customer experience.
Specialty insurers are increasingly targeting middle-market and small businesses to satisfy their growth objectives. Specialty products and underwriting exposures being complex, insurers are using technology and third-party tools to collect additional customer insights with the information clients themselves provide, to be able to design products tailored to each customer’s need.
Insurers can reduce the number of field visits by integrating third-party data into an insurer’s technology platform to pre-fill and ensure risk information is complete and verified. Take the instance of professional liability coverage for lawyers. Traditionally, a lot of research was required on law firms to assess new policy, which includes records of case won judgments, etc. Insurers can now aggregate this data and analyze it in their systems. This makes the process faster allowing employees to make more informed decisions. Combining these elements into a digital platform helps insurers merge these building blocks into specialty-specific solutions, creating opportunities to streamline their processes and simplify products.
With more historical and digital data available through new technologies and services, specialty insurers embrace more sophisticated rules and modeling capabilities to outpace the competition and sustain profitable results. Data becomes a differentiator that also enables the provider to scale. The availability of data, AI, and predictive analytics has helped improve efficiencies and savings for specialty insurance carriers, brokers, and policyholders while creating new opportunities to generate revenue:
• Policy Pricing – With the use of Internet of Things (IoT) sensors, data capturing using mobile apps, online user experiences data, personalized granular data is available for pricing platforms, to create actuarial models that allow safer risks to pay less for their specialty insurance. This has opened doors to usage-based specialty insurance offerings similar to personal lines.
• Personalized Customer Experience and Coverage – AI has enabled seamless automated natural language and other non-data-entry buying experiences. Insurers can develop a better digital experience by using chatbots that pull in customer’s social and geographical data for personalized interactions and customized on-demand combinations of specialty coverage for the specific exposures or events the customer is trying to insure.
• Faster Claims Settlement – Using AI, virtual claims adjusters can make faster decisions to settle and pay claims while reducing fraud, creating a better customer experience. For example – A marine insurer is leveraging data from connected devices in packaging, containers, and telematics to make claims settlement decisions faster and more accurately.
KMG provides a multi-faceted approach to develop and grow a Business Intelligence and Analytics practice that helps clients unleash the true potential of their data. Our BI and Analytics expertise enables our customers to predict and transform their businesses into new markets and explore growth opportunities through insights-driven decision making. The ability to turn complex data into actionable insights with speed and simplicity can be priceless for a company wanting to succeed in an increasingly competitive industry. KMG partners with its client to reach this goal, bringing forth hidden insights in the company’s data at the right time, and in the hands of the right people at the opportune time when decisions need to be made and plans need to be executed.