It’s clear that business priorities may have shifted some recently, but the insurance industry itself is still going strong. We as an insurance community are adapting to working from home—including the occasional video-bomb from family (and pets)—as well as a new dependence on the lifeline of technology that helps us all stay-the-course and stay connected.
The platforms we depend on in our home offices also underscore the importance of having solid technology solutions in place for your business. Insurers who have prepared themselves with cloud-based solutions, data analytics, digital platforms, and elements of automation will find themselves at a competitive advantage. However, those who are ill-prepared may scramble to manage unforeseen challenges—from workforce and insured distribution impacts to potential business interruption and workers’ compensation claims, among other possible implications. “Digital transformation,” while a broadly used term, is now seeing its day. It’s during unprecedented times like this—when you need information fast and you need to get a handle on your risk—that those digital investments can really pay off. Ultimately, insurers who lack a solid technology foundation of data analytics, in particular, run the risk of falling short in their commitments to customers and shareholders.
At Insurity, our number one priority right now—aside from ensuring the health and safety of our employees, clients, and partners—is helping our clients smoothly and confidently handle what’s here and what’s coming. More than ever, data and analytics are needed to fill the gap—whether that’s a lack of boots on the ground or a need for better purview into workforce distribution and portfolio risk.
What do insurers need to be prepared for?
- Influx of claims. Upwards of 30 million claims are expected from small businesses that suffered losses due to COVID-19—that’s a $220 to 383 billion per month loss estimate according to the American Property Casualty Insurance Corporation (APCIA). To add perspective, during the very active 2017 hurricane season, 5.7 million claims were processed.
- Changing rules and regulatory environment. New legislation in a few states is pressuring insurers to pay business interruption claims related to COVID-19 even though policies specifically exclude pandemics.
- Workforce uncertainty. Insurance, like every other industry, will need to understand the implications to its workforce and service centers. Understanding regional hot spots can help with planning and forecasting for personnel coverage, including sidelined employees and essential business operations, among other considerations.
What can be done now to ensure you’re prepared to manage your workforce and fulfill your promises to insureds while meeting stakeholder expectations?
- Look for easy wins. Our geospatial analytics and data enrichment solution can be very quickly implemented (in a matter of hours in many cases). We’ve recently integrated the COVID-19 data from John Hopkins University into our platform so insurers can overlay their portfolio or workforce data to visualize and apply advanced analytics, including filtering by state, county, lines of business and numerous other attributes to understand potential impacts.
- Prioritize data analytics and digitization. Be proactive and be prepared for the next crisis by building a solid technology foundation now. You may feel like you’re falling short in some areas, but it’s not too late to become a more data- and analytically-driven organization, right now.
- Gain operational efficiencies. Perhaps you have unforeseen expenses, or you’re concerned about lower premiums and investment earnings due to the economic decline. Now is the time to identify where operational efficiencies and automation wins can be gained.
- Turn to your partners as advisors. With deep expertise in technology, data analytics, and P&C insurance, our team is here to help you problem-solve.
Insurity’s consortium data overlaid with COVID-19 data and visualized within our geospatial analytics platform, shows potential exposure by state, county, lines of business, and various other filterable attributes to help insurers understand potential workforce and insured distribution impacts, especially in high-risk areas. This data is provided at no charge to Insurity clients.
Insurance organizations are in the business of expecting the unexpected. But what we’re facing today is something almost nobody saw coming. What now? With severe storms season upon us and a forecasted above-average Atlantic hurricane season around the corner, how will P&C insurers handle property inspections and claims? The strategic answer is data analytics. When you can’t get people in the field and there are more questions than answers, data and analytics are critical to uncovering the hidden value within your data.
Adversity is a forcing function for innovation. It requires problem-solving and creativity—the roots of innovation. Our job at Insurity is to help you be better prepared and to digitally evolve during this time. Additionally, it’s on us to take the lessons from this crisis to heart by turning adversity into an opportunity for innovation. We’re currently working with our partners to do just that. What will the world be like on the other side of this? One thing is certain: It will be more digital and data driven. Will you be ready?