5 Strategies for CIOs to Level up P&C Insurance Practices

Insurance CIO Outlook | Tuesday, September 10, 2019

The P and C insurance is at the edge of an era of innovation, and CIOs are challenged to do more with less. Fortunately, technology is helping them to strategize the insurance process and boost performance.

FREMONT, CA: The P and C insurance industry is experiencing unprecedented change and potential for disruption. Customers are empowered in the shopping and servicing of their policies like never before. Business leaders from the outside insurance industry are continuing to set a high bar in terms of digital interactions and increasingly shape customer expectations that impact how they view their interaction with insurance providers. The challenge for P and C insurance CIOs is how to navigate this changing landscape and adapt to these macro industry trends without losing sight of what drives customer satisfaction. The following are identified strategies that CIOs can adopt to address as they tackle this rapidly changing market place. 

• Telematics

Telematics— the practice of taking diagnostic data directly from a device and sending it to the insurer— provides a direct source of customer insight that allows a range of strategic and tactical opportunities to drive revenue, reduce costs, and build a more profitable relationship with customers. There is a buzz growing around this technology, and the adoption is slowly increasing. There is potential for CIOs to increase adoption and build competitive advantage by approaching the program with a customer focus.

Telematics encourages auto insurance to reduce claims payouts and improve the bottom line by promoting safe driving behaviors. With more accurate accident data available through telematics, insurers can more efficiently and accurately settle claims, detect fraud, and offer immediate assistance. In the houses, telematics can connect to in-home video cameras to perform digital inventories of home assets, making it easier to remediate losses.

• P and C Chatbots

 Chatbots use cases are growing, and the P and C insurance market slowly understands how to deploy this emerging technology best. Insurers are learning how chatbots can improve sales and marketing, underwriting, claims, and customer service. For the insured, the technology is used to explain complex products, navigate customers through complicated service interactions, and guide them to the right policy. The complex nature of many insurance interactions requires CIOs to be prudent about automating insurance operation with chatbots.

• Geospatial Analytics

Advances in machine learning and deep learning, combined with aerial imagery, are creating opportunities in property insurance. Geospatial analytics providers enable better decision making and fewer actions during property inspections. Competitive differentiation among providers will come down to AI sophistication, and vertical expertise. This analytics mapping tool uses sensors to provide geophysical, topographical, hydrological, and climatological data and interpret them along with metadata to provide a powerful tool for insurers to learn and adapt. With this, insurers can better predict and evaluate risk, allowing them to deliver appropriately priced products and services proactively. This becomes important in a world of instant information where insurers are trying to serve each individual customer need. Indeed CIOs can integrate geospatial analytics with organizations critical business system, making data not just insightful but actionable.

• Drone Inspections

With drone inspection, for the P and C insurance industry is getting an opportunity to harness data. More carriers in the industry are employing drone technology to empower claims operations. The benefits are the ability to capture the full picture of a property, and claim resolution made faster and accurate. Truly effective drone technology is more than just taking photos. Proper design can elevate claims operations and redefine underwriting capabilities. Fraud can also be detected by machine learning on patters of damage. Climate and drone data can be used in predictive modeling to understand losses across a geography with data. When evaluation a drone system CIOs must look for automation, 3D modeling, faster data processing, and online browser bases access.

• Wearables and Trackers

For P and C insurers, the use of wearables and trackers is at its early stages. The technology holds the key between insurance firms and tech-savvy clients who value a modern, updated experience and digital engagement. This technology can be advantageous to both insurers and their customers and insurance companies to gain healthy clients with longer life spans. They are a way of collecting simplified underwriting information. The data helps simplify the risk assessment process by offering metrics that would have taken longer to obtain through medical tests. The data gathered also acts as an additional source of information for new product development. The technology can also be leveraged to detect the clients' unhealthy lifestyle habits. With lifestyle conditions becoming prevalent, wearable technology will go a long way in promoting a healthy lifestyle among the insured. This technology's role in shaping industry trends is significant, and companies will further embrace wearables as the future of P and C insurance.

A few years ago, insurance was a slow-moving industry based in regulators and agent-driven channel. Today, the speed of change is fueling, and insurance carriers must respond to these evolving megatrends to compete and win. There is never a more competitive environment for P and C insurers in the battle to gain and retain business. The amalgamation of new insurance shoppers, rising consumer expectations, consistent price competition among insurers and emerging insurance technology disruptors are forcing CIOs into the aggressive game. The above-listed strategies have the potential to transform the property and casualty insurance for the better and the most significant wins for those who adopt it first.

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