Over the last several years, the insurance industry has been changing. New technologies like Computer Vision and Geointelligence have significantly improved the ability of carriers to evaluate risk. At the same time, nimble new startups like Hippo and Lemonade have begun to challenge larger and more experienced carriers. What insights can the modern insurer glean from these transformative times, and how can they adapt to a rapidly changing industry?
One important takeaway is the increased importance of a positive customer experience. Building long-term and collaborative relationships with insureds in addition to paying claims is setting some insurers apart from the rest. Policyholders no longer just want a relationship with their carrier that is impersonal. Companies like Hippo recognize this need in the market and have built their business model accordingly.
Beyond just better service, though, the increased focus on customer experience can be tied to a larger paradigm shift in the insurance industry. That is a change in mindset, from “Repair and Replace “to “Predict and Prevent.” What does this change in mindset mean, and how can it be seen in the ways that Property & Casualty insurance companies interact with their insureds?
Put simply, “Repair and Replace” is a reactive approach to insurance, in which insurers only interact with their policyholders at the time of a crisis. With “Predict and Prevent,” the insurer takes advantage of every opportunity to engage proactively with the insured. In some cases, this means providing smart devices that monitor changes in a property’s condition and warn homeowners when they are at elevated risk. In other cases, it may mean using technologies like the Betterview platform to identify real risk drivers on a property, then informing the insured so they can take proactive steps to address the risk. In this way, the insured gets a better quote, the insurer avoids paying out losses in the future, and both parties can have a more positive, trust-based experience.
Insurance companies that are able to emphasize the customer experience show the value of a “Prevent and Predict” approach in modern P&C Insurance. Customers have grown accustomed to a higher level of service, as well as more advanced tech-powered solutions. A positive and consistent customer experience is the way of the future for P&C insurance.
This blog is the first in a series based on the recent Insurtech Innovators webinar, Enabling Digital Transformation, featuring Betterview co-founder and COO Dave Tobias, along with representatives from DocuSign and Smart Communications.
If you want to learn more about Betterview and our Remote Property Intelligence Platform, be sure to visit our blog today.