{"id":1546,"date":"2020-10-26T09:11:29","date_gmt":"2020-10-26T09:11:29","guid":{"rendered":"http:\/\/www.insurancesupportworld.com\/blog\/?p=1546"},"modified":"2020-10-26T09:11:29","modified_gmt":"2020-10-26T09:11:29","slug":"disruption-in-insurance-industry","status":"publish","type":"post","link":"https:\/\/dev.insurancesupportworld.com\/?p=1546","title":{"rendered":"How can Insurers Stay Relevant in an Era of Disruption?"},"content":{"rendered":"

We all are aware of the disruption the insurance industry is experiencing especially from all sides. A significant challenge of adapting to the new normal has come up after the COVID-19 outbreak, and insurers need to find more ways to deal with it. Besides, the growing competition in the market (that was already there before the pandemic) increases the difficulty of thriving in today’s demanding market. Above all, they have to deal with the changing demands and expectations of the customers<\/a>.<\/p>\n

Several questions have been unanswered in the previous months; however, let’s read what industry experts say about how insurers can stay relevant in an era of disruption.<\/p>\n

1. Adapt to the Evolving Digital Landscape<\/h3>\n

John Holloway, Co-founder of NoExam<\/a><\/p>\n

\"John<\/a><\/p>\n

Traditional insurance companies will need to look to partner with or invest in new startups that aim to disrupt the market. We have already seen this happen to an extent, but we have yet to see a new company really disrupt the insurance market in a wide-spread way.<\/p>\n

Insurance companies have the capital, but they will need to stomach a bit more risk on their balance sheets in the form of partnerships and investments if they want to stay relevant. Disruption is coming; it is just a matter of when.<\/p>\n

At a minimum, insurance companies need to invest in the digital experience from mobile apps\u00a0to\u00a0easy to use websites to streamlined digital communications. Consumers have reached a point where they will not tolerate frustrating online shopping experiences. The time has long since passed to adapt to the evolving digital landscape.<\/p>\n

2. Embrace Technology<\/h3>\n

Tal Shelef<\/a>, Realtor and Co-Founder of Condo Wizard<\/a><\/span>\u00a0<\/span><\/p>\n

\"Tal<\/a><\/p>\n

Insurers should embrace technology when aiming to stay relevant in these harsh times. Reach out to customers and maintain relationships through digital campaigns. Aim to provide the information they would find useful and relevant to help keep their interest. By doing so, insurers are not only showing customers that they care, but they are also distributing necessary knowledge and actions needed to help beat out the pandemic.<\/p>\n

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3. Utilize Data and Have a Customer-Centric Approach<\/h3>\n

Adrian Mak<\/a>, CEO of\u00a0AdvisorSmith ,\u00a0AdvisorSmith<\/a><\/p>\n

\"Adrian<\/a><\/p>\n

Digital disruption affects insurers in two major ways:<\/p>\n

1) Risk analysis and pricing<\/p>\n

2) Customer acquisition<\/p>\n

For risk analysis, increasing amounts of digital data generated by smart devices can improve the quality of insurers’ underwriting models and allow them to offer more accurate pricing. Think of sensors that measure how aggressively a driver accelerates, or satellite photos and machine learning that allows insurers to see if properties are accurately described.<\/p>\n

For customer acquisition, the big opportunity for insurers is to invest in systems that allow customers to get quotes in real-time and purchase directly. The disruption here can come from new upstarts who are digital-first and have built tools to allow instant quoting, underwriting, and purchase.<\/p>\n

Also Read<\/strong>: Remote Working & Insurance! Can they Go Hand-in-Hand?<\/a><\/p>\n

4. Update the Buying & Underwriting Process<\/h3>\n

Sa El<\/a>, Co-Founder of Simply Insurance\u00a0Simply Insurance<\/a><\/p>\n

\"Sa<\/a><\/p>\n

To stay relevant, insurance companies are going to need to update both their buying process and underwriting process to an online platform that is super simple and fast to use.<\/p>\n

If you look at the generation of people who are currently buying insurance and the ones that are going to need it in the future. It’s easy to see that people want things fast and want to be able to do it online.<\/p>\n

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5. Adopt Technological Advancements<\/h3>\n

St<\/a>acey\u00a0Giulianti<\/a>, Chief Legal Officer, Florida Peninsula Ins Co<\/a><\/p>\n

\"Stacey<\/a><\/p>\n

I\u2019m not convinced that insurance \u2018disrupters\u2019 are anything more than just better marketers. Insurance is still a business of collecting the proper premium, servicing the customer, and accurately managing your underwriting results. Apps on a smartphone won\u2019t change the fundamental business of property insurance. Carriers should, however, adopt technological advancements that help the customer manage their policy and utilize their benefits.<\/p>\n

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\u00a06. Key Adoptions for a Successful Future<\/h3>\n

Rogan Dwyer<\/a>, Chairman of \u00a0Observatory Strategic Management<\/a><\/p>\n

\"Rogan<\/a><\/p>\n

The insurance industry is, or shortly will be, technically bankrupt through its own refusal to move with the times. Carriers have failed to change the business model or perception of what an insurance company is in the modern world. By failing to clarify insurance coverage, failing to shoulder their responsibilities to place the interests of their customers first (the policyholders), and failing to embrace new technologies that reduce costs, redundancy, and risk, they will be forced to turn to governments for bailouts.<\/p>\n

If we equate such bailout to Lloyd’s own Recovery and Restoration sleight of hand of the mid-1990s, the blueprint is there for an unencumbered insurance market to rise Phoenix-like to provide the services and support\u00a0individuals’ and businesses’ need for the future. This successful future, therefore, relies upon the following adoptions:<\/p>\n