3 Takeaways from a Decade of Ins. Digital Transformation
written by Mikhail Palatnik, CoreLogic
As 2020 marks CoreLogic’s 10th anniversary, we’re reflecting on the insurance industry’s transformation over the last decade.
experience metrics for insurance quoting and claims management processes and AM Best has introduced a ranking for innovation.
I did not even begin to realize that at the start of my career, this industry and all its nuances, peculiarities and intricacies would become my passion. Part of what drew me to the insurance industry, and what has kept me here well over two decades, was knowing how much of this industry was ready to be disrupted.
A challenge in the shift to digital is the expectation of immediate gratification. As with nearly every aspect of our lives today, we all expect things to be instant, digital and easy to access. So, it becomes even more important to build a relationship with the customer by discussing their risk to help offset any extra time that may be necessary to complete the quote and perform a thorough analysis of their overall exposure.
Here are three ways we’ve seen the industry transform over the past decade:
1. Digital Modernization and the Evolution of Customer Experience With any disruption, all parties must adapt. Agents are now challenged to operate differently and to find ways to increase value for consumers in the face of fierce competition in the direct-to-consumer business models. Underwriters are becoming more tech-savvy and developing solutions to simplify the consumer experience. Claims officers are moving more of their capabilities from the field to the desk, as they face constant pressure to reduce loss adjustment costs and streamline the claims process for consumers. Emerging InsurTech carriers continue to push the boundaries by operating with a small physical or fully digital agency footprint, forcing established carriers to innovate. The consumer experience has moved front and center as insurance interaction experiences begin to mimic all other digital interaction that consumers have grown accustomed to like Amazon, Uber and Airbnb. J.D. Power introduced consumer
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2. Climate Variability and Advancement of CAT Event Management Just a decade ago, private flood insurance was rarely thought about, but events like Hurricane Harvey in 2017 highlighted the need for private flood insurance, especially for homes outside of designated flood areas. For an accurate assessment of risk, the need for properly assessing the risk of a property itself – as opposed to the risk of a property centroid – is now available with high-resolution granular risk data. Significant improvements have been made in catastrophe risk modeling for wildfire and flood – relatively new modeled perils – along with hurricane, earthquake and severe convective storms.
3. Progression from Risk Avoidance to Risk Management Products With so many new ways to predict and prevent, there are also continued on page 30
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