Insurance Solutions for Property-Casualty Insurance
Posted by insurance software companies on January 18th, 2022
Cogitate Technology Solutions takes a look at trends in property casualty insurance and how insurance providers can channel these changes to their advantage. As disruptions continue to transform traditional industries, insurance companies too are looking at a future that is hard to predict. Technological shifts continue to impact the very nature of the services and the role of insurance providers. The future, though unpredictable, can still be prepared for.
Cogitate Technology Solutions takes a look at the top trends that are transforming P&C insurance to help prepare insurers to meet these challenges:
Big Data and analytics: Good data will always remain an invaluable advantage for any insurance provider. Now more than ever, P&C insurancecompanies have a gargantuan amount of data collected from direct interaction, smart-device usage, wearable and embedded sensors or even social media. However, the quality of insights from this data and their action ability is only as good as the analytics.
For insurance companies that can harness the power of predictive data analytics systems, improved pricing and risk selection, identifying frauds and quicker processing of claims hold the promise of increased customer satisfaction and loyalty.
Drone inspections: Certified drone operators could be the future of claims professional, especially for property casualty insurance. Drones are increasingly used to gather data before property insurance, assess damages after a catastrophic event and even assist in routine maintenance. Expect regulatory changes that will help insurance houses expand the nascent use of drones to more domains and tasks. Combined with geospatial analytics and AI sophistication, drones can give P&C insurance providers the competitive advantage.
Wearables: The face of workplace injury insurance solutions is set to change with the integration of wearable devices and sensors into traditional offerings. Smart wearable devices that track movements and can help establish risk profiles for employees will be invaluable for managers when planning trainings. The real-time safety data will have a tremendous impact in lowering injury risks, creating safety checklists and inspections.
Autonomous vehicles: As driverless cars accompanying safety and time efficiency become the norm, KPMG predicts a massive drop in traditional automobile insurance the coming decades as the number of accidents and bodily injury liability reduce. Premiums might hold up in the short run as cost of individual accident go up due to expensive automobile technology and parts, but in the long run analysts predict a sharp fall. However, the loss in personal lines may be compensated by gains in commercial lines as more ridesharing and on-demand services rise. Also, with the convergence of ultra-connected automotive technology and mobility, breach of data privacy and malicious interference might see a commensurate rise in cyber liability insurance.
Robotics: As insurance companies seek to add more value through technology, robotics process automation (RPA) adoption will see a rise with P&C insurance companies. RPA is a technology that uses no-coding-required software bots to imitate human interactions like clicking, opening apps, typing, etc. RPA integrates these interactions with digital systems and helps insurance providers gain an artificially intelligent workforce that can handle time-consuming, routine tasks. RPA combined with human intelligence can help augment higher-value decision-making, increase efficiency and improve scalability across the P&C insurance value chain.
Insuring millennials: Millennials are a part of the market that insurance companies must learn to sell to, however steep the learning curve. Digital natives by nature, millennials demand ease and convenience. Insurers must establish a presence not just online, but also offer mobile insurance solutions and be accessible across multiple social platforms. Rich rewards in the form of educating and engaging a whole new segment of the market awaits those that succeed.
Weather Analytics: As the frequency and severity of calamities like unseasonal cyclones, hurricanes, floods and fires increase each passing year, the insurance domain is struggling with underwriting these risks due to unavailability of data for assessing risks. P&C insurance providers need to arm themselves new monitoring and sensing technology, hyperlocal weather data in catastrophe-prone areas and focus on climate related risk management and investments.
Most property casualty insurance software providers are skeptical about the impact of these changes and believe the changes to be far in the future as most of these disruptions are in an embryonic stage. While this conservatism is understandable, insurers’ agility and preparedness in responding to these changes will play a key role in their survival. Partnering with the right technology partners to help ride the wave could be the differentiator between thriving on change or succumbing to it. To understand how Cogitate Technology Solutions can help you harness the power of change, visit www.cogitate.us
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Joined: February 26th, 2021
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