Key Trends That Will Shape P&C Insurance Markets

Disrupting technologies, increasing competition and economic pressures makes P&C insurance to look beyond traditional strategies.

A shift is going on in the P&C insurance sector. In this shift some will emerge as leaders, many falling behind, and another group may be wiped out from the market. Year 2016 continues with market disruption. What are the forces that disrupt the market? How it affects processes and stakeholders is a hot discussion already. Now let us delve deeper.

First and foremost is disruption due to innovations and new product development. Innovations are great levelers as well as a destroyers. Just look at the potential of IoT in changing insurance business. IoT is adding new tasks for the insurers. Wearable devices, automobiles, transmitters, medical equipment’s, security systems, doors, lights etc., are providing insurers to segment markets and create new price models for the P&C market.

Emergence of sharing economy where assets are shared is creating opportunities for the property and casualty markets. This means insurance companies need to create new pricing models to tap those assets.

Are agents being replaced?

Digital technologies are throwing a spanner in the established property and casualty markets. Before digitization threats insurers employ agents to educate the customers. But the growing digitization phenomenon is slowly eliminating the key role played by agents as a medium between insurers and customers. For example, Google Compare helps customers to compare different products online, where customers can buy the products directly from the insurer. This may have a bearing on the premium as the commissions paid to the agents can be given as a discount to the customer.

Cyber security

Thanks to digitization P&C customers are expecting personalized services like access anytime anywhere. This is making the customers happy where Millennials being the target and at the same time it is opening up risks like cyber security and hacking. Such risks can impact on the credibility of the insurance carriers. Today IT solutions come with additional embedded layers of protection to protect data assets.

Telematics

The growing connected car with mobile telematics applications is redefining the traditional price models. The traditional model is being replaced by usage based insurance (UBI). This will empower the drivers to gain discounts on their driving behavior. The lesser the risk, the lower will be the premium. This trend is opening up opportunities for mobile application providers to come out with premium features in mobile telematics application. User friendly features like gamification and ancillary services like roadside assistance are a few examples to cite.

Big Data

Underwriting involves collection of information with precision and accuracy. Big data is churning the property and casualty insurance sector. Big data technologies help in making underwriting effective with crime statistics and risk assessment leading to more accuracy in the underwriting process benefiting all the stakeholders.

Personalized customer experience

P&C is a competitive and cost-sensitive industry.It requires engaging customer to connect through personalized communications, meticulous evaluations, and speedy claims. Personalized customer experience results in customer retention. Therefore, robust mobility solutions are required for insurance companies to initiate the issuance of policies, claims processing without going to the insurer physically.

Love or loathe it, insurance carriers cannot avoid cloud computing to align with customers who prefer to have access on business over their mobile. Therefore insurance mobility holds the key for P&C insurers. Key brokering, claims, underwriting, re-insurance and accounting need to be enabled with solutions to speed up customers’ appraisals and claims consistently, at reduced cost. The bottom line here is reducing the claim processing time. This will help in improving customer engagement through multi-channel delivery for clients. Moreover, this makes easy setting appointments, report losses, and receive notifications as and when required.

PRIME’s new Policy Administration System is a SaaS-based claims administration software designed with the latest technology, for property and casualty insurers of all sizes around the world. Supporting such standard practices as quoting, new business, and a multitude of other standard necessities for carriers, PrimePAS also offers its users a beautifully customizable insurance policy administration software – so you can tailor each aspect to your business’s specific needs. PRIME’s property and casualty insurance software makes your business ready to adapt and deliver for the fast-paced, action-packed years ahead. For more Information Please visit: http://www.primetgi.com/insurance-software-solutions/policy-administration-primepass/

The Importance of Insurance Reviews

Expert Author Tom Lum

Most people reach out to their insurance brokers or underwriters when there is a significant event in their lives that necessitates new or revised risk coverage – perhaps when they purchase a new home or it’s time to trade-in the old car. However, far fewer remember to review their insurance at regular intervals or when more subtle changes to their coverage requirements occur.

Reviewing your insurance regularly helps ensure your coverage is what you expect it to be in the unfortunate circumstance that you need to file a claim. It also aids in making informed decisions regarding coverage and being proactive about minimizing your insurance costs.

There are many different circumstances that could possibly change your coverage requirements and prompt a call to an insurance professional for a review. The examples below identify some of the instances in which you might want to review your coverage:

  • Renovations – If you perform renovations to your house, it is likely that you are also increasing its value. Whether it’s a new kitchen, bathroom, pool, or even expensive landscaping, remember to check your policy limits to ensure they remain adequate in case of an insured loss. If you’ve recently renovated your basement, also note it is quite likely that your water damage insurance needs to be reviewed.
  • You’ve been accumulating possessions – Have you done a home inventory lately? Most people have more personal possessions than they think. Estimating the total value of your contents is vital to helping ensure your limits are adequate.
  • You’ve purchased a high value item – Remember that some of your personal possessions have to be scheduled to be properly covered. Jewellery, antiques, collectibles, wine collections, and art are a few examples of pieces that may require additional coverage.
  • New coverages have become available – The insurance industry frequently adapts to changing market conditions and offers coverage in areas that it has not in the past. For homeowners, insurance for overland water damage and home repair issues (such as broken furnaces) have recently become available from some insurers, in some areas. In addition, legal expense insurance, travel insurance, and pet insurance are available from brokers looking to cover more of your risk and insurance needs.
  • Laws changing to give you more or less choice – Changes to automobile accident benefits mean you should review your choices.
  • You become eligible for additional discounts – Changes in your personal circumstances may affect your eligibility for policy discounts. For example, if you install an alarm system you are likely eligible for a discount on your homeowner policy. If you use snow tires on your vehicle, many insurers offer a discount on your car insurance policy. If you pass the age of 50-55, you may become eligible for mature driver discounts.
  • If you change jobs and have a shorter commute – You should report this to your insurance broker as driving less typically correlates to lower risk and less expensive premiums. If you have a certain job occupation, you may also be eligible for lower insurance rates.
  • You’ve started a home business – A different use of your home, other than strictly residential, may require business insurance to properly cover liability risks.
  • Your personal circumstances change – If you get married or have children, you may want to review your coverage to ensure your coverage levels are adequate to look after your dependents in case of an accident.
  • Your child gets a driver’s licence – Always check to see if your child can be added to your policy. It is often the least expensive option for insuring them to drive. If they get their own car, you are also probably eligible for a multi-car discount.
  • If your child moves away to attend college or university – Check to see if your homeowners coverage can be extended to protect your child’s assets while away at school. It may be more cost-effective that purchasing a standalone tenants insurance policy.
  • If you haven’t had an insurance review in more than a year – Your coverage levels may be out of date. A key example of this is your home insurance. Property values and replacement costs can easily rise to the point that your existing coverage limits do not allow for the total reconstruction of your home in the case of a total loss.

Taking the time to speak to your insurance professional is always time well spent. Even if you don’t save on your insurance costs after the call, there is no substitute for having the coverage you expect when a claim becomes necessary. Since most insurance policies are for the term of one-year, it is a good idea to speak to your insurance professional before renewing your annual coverage.

Visit the Marsh’s Private Client Services website for information about car and home insurance: http://canada.marsh.com/ProductsServices/MarshSolutions/ID/41728/Car-Insurance-Auto-Insurance.aspx

Marsh’s Private Client Services is the administrator of group home and auto insurance programs and an operating practice of Marsh Canada Limited. Marsh is a global leader in insurance broking and risk management. With Marsh’s Private Client Services, you have access to a team of knowledgeable and experienced insurance brokers, readily available to help you determine your home, auto, and tenants coverage requirements. Marsh’s Private Client Services offers the strength and stability of a national company with a commitment to professional and personalized service. Please call your Marsh’s Private Client Services licensed insurance broker to discuss group insurance programs or receive a no-obligation insurance quote at 1 877 476 6727.

Article Source: https://EzineArticles.com/expert/Tom_Lum/2011352

More Than Terrorism Insurance: Child Talk

For those that smugly thought terrorism was something remote, realty has unfortunately proven otherwise. For the longest time, it was a genuine need to procure international travel insurance for business employees as well as tourists and volunteers traveling overseas so that coverage would be provided against the modern evils.

Today, terror rears its ugly head not only in the troubled spots corners of Africa and Asia, but also in the western world. Europe is not immune. Certainly France and Belgium have recently suffered immensely from the extremist activity. Now we are facing a new and ugly reality in own home backyards, causing losses, and damages on personal property and human life.

While the Twin Tower catastrophe of 9/11 has paved the way for a new look at US terrorism insurance and commercial coverage, the current wave of terror related violence that has reached regions within our shores is something that no one is prepared to confront emotionally as well.

Of course those least equipped for the tragedies are the children. Indeed, the publicity these terrible acts get makes it nigh impossible to shield our young ones from the brutality of it all. How do we assuage the effects of something so troubling?

Across the board, psychiatrists and psychologists are encouraging parents and educators to hold face to face talks with kids about their fears. Tell kids that it is natural to be fearful, they say. Validate their feelings, they add. Thereafter, the professional advisers say that adults need to speak to children about ways to draw comfort and solace. Everyone needs to heal from the impact of a terror attack, ever so much more so the youngsters who cannot rely on life experience to assist them in doing so.

What to Say to a Child following a Terror Attack

Mothers, fathers and educators should encourage kids to talk about the fear they feel as a result of the events of terror that they are hearing about. In general, it is natural to be disturbed about the violence and it is equally normal to be afraid for one’s own safety.

Tell kids about how others react to the tragic chain of events. There are those so impacted by the terror that they shut themselves off from the reality of things by not responding at all. This of course is not a healthy recourse. Explain to children that it is good to let their emotions out by talking about it to parents, teachers and their buddies. Calm your child down by explaining that the violence occurred far from your home, school and any business they frequent. Explain to him or her that there is little likelihood for such a terrible thing to happen near them.

Remember to also explain that just because the bad people in this case belonged to the same religion as others or dress in the same manner as others they see does not mean all folks like that share liability for the bad. Teach your child to respect all people that do not hurt others. Encourage your child to vent his fear and anger by engaging in productive activities, like helping others – perhaps by writing notes of thanks to those that assisted the victims of a terror attack or by sending homemade drawings to them or by helping to raise money for the victims in some manner. Finally, try to get kids to follow a regular sleep and activity routine, underscoring a healthy and healing lifestyle.

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How to Get Even More Power to Your Existing Insurance Policy

Though you might not be aware of it, standard Homeowners insurance policies – as well as auto, boat and business coverage – are limited. The gap in coverage is why when damages or losses occur, you may be submitting a claim that will not compensate to the full extent you expect. For this reason, many opt for buying an affordable personal policy.

The Ins and Outs of a Personal Umbrella Policy

Because more than eighty percent of umbrella liability claims are in relation to car accidents, any driver could face catastrophic losses without it. Envision the following true-to-life risk examples.

• A sixteen year old boy drove his father’s car. He did not see the stop sign at the corner and crashed head on to another automobile. The other driver incurred severe injury to his back.

• A woman worked overtime for two weeks due to an overload of work. She was so tired when she drove home one evening that she fell asleep at the wheel causing her car to veer off the lane onto the oncoming traffic lane. A car saw the woman’s car coming at him and swerved to avoid a crash. The other driver’s car rammed into the store front window glass of a retail shop. Damages included loss of goods and an injured worker.

• The kitchen contractor a home owner hired was hard at work improving the cooking spot with reformations when the accident occurred: he tripped on a mound of wood scraps and hurt himself badly. Because he did not have enough personal insurance to cover the doctor and hospital bills, he sued the home owner.

The Ins and Outs of a Business Umbrella Insurance Policy

If you are a business owner, you know that there are liability risks to your field. Gaps in standard commercial coverage could mean financial disaster in the event of significant losses and damages. Think about the following examples to realize the extent.

• A employee claimed her boss treated her incorrectly and sued for sexual harassment.

• An African American worker was unhappy because his boss switched him to another department. He sued the business owner for discrimination.

• The boss’s assistant developed a case of carpal tunnel syndrome, resulting in necessary surgery and a few months of occupational therapy.

• A passing pedestrian slipped on the sidewalk in front of a retail store and broke his ankle. He filed a pain and suffering lawsuit as well as for the related medical expenses.

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Sleeping With the Enemy Might Be The Only Way to Save Personal Lines Insurance

The last decade has brought tumultuous changes to the insurance industry and especially to the way insurance is sold. We now find ourselves in a world where insurers have become some of the top spending advertisers in the country with Progressive coming at #22 and Uncle Warren’s Geico at #5. Each of those insurers individually spent more on advertising than perennial television spender, Budweiser, who finishes the list at #25. All of this ad spending is working and last year Geico passed Allstate to become the second biggest auto insurer in the country.

This deluge of advertising has been largely focused on price, and it is no secret that it has convinced the average consumer that personal lines insurance is a commodity where the only thing that matters is finding the lowest price. Many analysts such as McKinsey and Nomura Equity Research have declared that insurance is now a commodity. Those of us who work in the industry understand that this is simply not true. Personal lines insurance is not by any means a commodity that ought to be bought on price alone. Personally, we love Chubb’s tagline “Who insures you doesn’t matter. Until it does.”

It’s not just who insures you, but also what your insurance contract says, how high your limits are, how well it is protecting you, and especially whether that contract properly matches your own personal circumstances and need for protection. Several great articles, like this one from Bill Wilson at Insurance Thought Leadership, have appeared in the industry press by coverage experts much more experienced than us, explaining in length and with illustrative examples of how cheap insurance might just as well be no insurance when a large loss happens. As Bill points out “consumers are being duped into believing that personal lines insurance is a commodity, with the only significant difference being price. Nothing could be further from the truth.” We’re not aiming to replicate those explanations here rather we want to offer a crazy idea that just might help us save personal lines from becoming further commoditized.

The articles mentioned above have the right information, but they are targeting the wrong audience. What is sorely needed is a concentrated industry marketing campaign to explain to the general public how insurance is not at all a commodity. We completely agree with Bill and other experts who have shown why insurance isn’t a commodity, but we believe that we have to go further than just getting insurance agents (many of whom are already trying to get their customers interested in looking beyond price) to explain it to their customers. We need a concentrated public facing marketing campaign.

Uncle Warren has made it very clear in his shareholder letters that he will spend whatever is necessary in marketing for Geico to continue growing – giving the Gecko an essentially unlimited wallet. The adorable Australian reptile spends the great majority of his time talking about cheaper rates, every once in a while about customer service, but pretty much never about having proper coverage that meets your need.

Price-focused insurers Geico and Progressive together spend around $1.6 Billion a year on advertising. Quite simply, none of the more traditional service and coverage focused insurers can compete with that much spending on their own.

As you can see above, the vast spending is working. In just over a decade, Geico has moved up to the 2nd highest market share from being only the 6th in 2001. If this continues, it would be no surprise to see Geico surpass the top share within the next decade. Similarly, Progressive, another price focused carrier, has almost doubled its market share, while the traditional customer service focused companies that we mentioned, with the exception of Liberty Mutual, who acquired Safeco during this time, have all seen their market shares shrink. In 2001 Geico and Progressive together accounted for 9.5% market share. By 2013 they have managed to just about double it to 18.7%.

Here’s where our crazy idea comes in: We propose that a group of traditional, customer service and coverage focused insurance carriers start an alliance and dedicate a significant part of their marketing budget into explaining to the people that insurance is really about much more than price alone, showing explicit stories from real people and statistics about the real cost of low-price insurance.

Imagine the three biggest mutual insurance carriers SF, Liberty Mutual and Nationwide, coming together and starting a marketing alliance to educate the public. Let’s tentatively call it the National Mutual Insurers Alliance. Together, the three biggest mutuals spend around $1.55 Billion a year on marketing, very close to Geico and Progressive’s total spend. Obviously the three companies can’t dedicate their entire marketing budget to this project, but if they dedicated some 20% of their budget, a total of around $310 Million per year, they could make a real difference in explaining this important issue to the consumer. Then, they could involve other smaller regional mutuals to participate as minority partners in the effort.

Here’s an idea of what the commercials might look like (although we’re sure the actual marketers at the carriers can do much better):

The opening sequence shows a middle aged couple. The legend underneath says “Mr. and Mrs. Jones. Not a dramatization.”

Mrs. Jones: “We had been insured by our local Liberty agent since college. We really had nothing against him, he was a great guy and always treated us well. But times were tough in 2008, Gary had lost his job, and we were on a limited budget. Like everyone else, we had seen hundreds of commercials about cheap insurance, and right after getting rid of cable, we called them for a quote. We were very happy when they saved us $400 a year.”

Her voice crackles as she goes on:

Mrs. Jones: “We really had no idea that the policy was so different. We never even speed. We never thought we’d ever have a big accident.”

The video fades to a real picture of a car that suffered a rear-end accident. Mrs. Jones’ SUV rear-ended a small coupe. The bumpers are gone but otherwise there’s not that much damage.

Mr. Jones: “At first, we thought everything was fine. The woman driving the other car was a little sore, but she said she would be fine. She was taken to the hospital by ambulance as a precaution, but she was released the same day. We had insurance and thought we had full coverage. We found out a few days later when her lawyer contacted us that we only had state minimum liability coverage, and her medical bills were adding up.”

Mrs. Jones: “The accident ended up in court, and the jury awarded her $150,000. Minimum liability in our state was only $25,000, so that’s all our new insurance company paid for. We lost our house and have liens on our income until the rest of the $125,000 has been paid. This has destroyed our lives. We just had no idea. We thought we were getting the same coverage we had before.”

At the end, it fades to a black screen showing “Mutual Insurers Alliance” and a memorable slogan, along with the logos of Nationwide, SF, and Liberty Mutual as the primary sponsors, and any other smaller mutuals as minority sponsors.

Another commercial could show insurance experts talking in layman’s terms about the cost of claims and how people’s assets are at risk if they don’t have proper coverage tailored to their needs. Outside of the property and casualty industry, these kinds of campaigns already exist. Many are managed by non-profits; we can all think of examples in the medical industry, such as Susan G. Komen for the Cure or the American Heart Association. Closer to our industry, there is Life Happens which was created by national insurance producer organizations to raise awareness around life insurance, and they sponsor Life Insurance Awareness Month every year.

We’re not saying that this is the only solution, but we are saying that it is the right thing to do for the consumers and that somebody has to do it. We believe the big mutuals are in the best position to do so, but it could be any other combination of coverage and service focused insurers who are willing to put their decades of competing with each other aside to save personal lines from becoming a commodity.

Insurance Adjuster – What Do They Do?

An insurance adjuster has many jobs, but the main one is to find out for the policy holder what the exact compensation is going to be paid to them. Today, insurance is a very broad field with many different types of insurance with each one having their own rules, financial aspects, and specific policies. Being an insurance adjuster is a field that is in high demand. They generally will provide their services in insurance companies that are considered big property-liability. Some work in insurance agencies and banks. Their primary responsibility is to fix and finalize the amount of the claim that is to be paid to the policy holder, but some may work in the fields of car accidents, property damage, or for those that are injured in other accidents.

In insurance claims, the customer has lost their property and goods in the event of theft, accidents, fire, and more. The insurance adjuster will visit the customer who have the claim, known as the claimant. It is the adjuster’s job to get all the details of the incident. If it is an accident the adjuster will have to talk to any witnesses and consult with the police to make sure there are no doubts about who was and was not at fault. They will also examine the medical records to make sure the claim about the accident is genuine.

If there is property damage the insurance adjuster will have to inspect the property to see how much damage was done and then decide how much the company is liable for in regards to payment. They also have to check policy documents, claim forms, and see if there are any dealings that could show an attempt at fraud by the claimant. The adjuster may also be required to negotiate claim settlement and if they cannot reach a settlement with the claimant then they will move the matter to court. It is important that the negotiation that is administered by the insurance adjuster is fair to both the claimant and the company. The adjuster has to document all records, proceedings, and investigations for future reference.

To become an insurance adjuster there is no formal education but you do need to understand how insurance works and a high school diploma. Many of the states do require that you obtain a license but it will vary from state to state. If you are required to have a license you will have to take a written test and then work on small assignments under the supervision of a licensed insurance adjuster before they can work on their own.

This article is penned by Lora Davis for Insurance Claim Recovery Support. Insurance Claim Recovery Support helps with claims recovery support. If you need a Oklahoma City public adjuster or Fort Worth public adjuster then contact this company.

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