How the Insurance USE TECHNOLOGY SURVIVE

It all starts with underwriters. The market begins hardening as underwriters stick to stricter standards and tighten up policies to minimize losses. Stricter underwriting results in insurance rates increasing and can make certain lines of coverage unattractive, or even unprofitable for carriers to offer.

With fewer coverage options available, insurance customers rely more heavily on their agents to help them find the coverage they need at a price they like. The decrease in coverage options also allows the carriers who are still offering certain coverages to increase their rates even further, without the fear of losing business to competition.

Three Tech Solutions to Respond to a Hard Market

When the market hardens, policyholders rely more heavily on their agent to help them find the best coverage for their specific risks. The fundamental job of an agent, to bridge the gap between clients and insurance carriers, becomes more crucial. Producers looking to increase their value to both clients and carriers in a hard market can do so by leveraging tech solutions to automate processes, aid in risk prevention, and improve data collection.

1. Automate Processes

With costs rising across the board due to inflation, insurance agencies and carriers may be looking for ways to control costs and protect their bottom line. By investing in tech solutions that use automation to streamline operations, these businesses will be able to increase efficiencies and simplify producer work flows.

Digital solutions can help agencies and carriers minimize operational costs by removing human hours spent on manual activities like filling out forms and tracking down license renewals. Eliminating these processes drives a more efficient bottom line and more importantly frees agents and support staff up, allowing them to put more time into helping clients and building stronger relationships. Which is exactly what insurance customers need in a hard market.

2. Aid in Risk Prevention

In a hard market, insurance companies’ appetites for risk shrinks which means the industry needs to shift its focus to be heavy on risk prevention. To help their clients prevent risk, insurance companies can use predictive technologies and next level product and service visualization tools to evaluate current and future risk..