Since 1989, nearly 20 percent of the global insured losses from natural catastrophe events occurred in the years 2017 and 2018—the highest ever for a two-year period at $219 billion—with a large percentage of those losses in North America. That’s staggering to think about. It also underscores the need for insurers to implement effective and proactive event response solutions.
A conflux of issues is driving the need for more effective event response:
- More frequent and extreme perils, particularly in parts of the U.S. that are more susceptible to the effects of climate change
- The need to improve operational efficiency and drive expense reduction
- Growing customer satisfaction demands and expectations
Beyond the increase in frequency and severity of events, insurers are facing challenging—even unprecedented—conditions with the COVID-19 pandemic. This will heighten the need for efficiency gains as insurers look to reduce operational expenses. It will also make effective catastrophe and claims response more challenging as carriers struggle to get boots on the ground and people in the field.
To complicate matters more, customers expect more. Our on-demand society has accelerated the need for insurers to provide faster and more streamlined catastrophe outreach and response. The sooner a company is aware of an event, the faster they can begin mitigating losses and servicing insureds. This is especially important in states hit hardest by severe weather, such as Texas and Florida, which have shown declining customer satisfaction scores in the aftermath of weather-related events.
“Areas hit hardest by weather events show declining satisfaction. Texas and Florida show declining customer satisfaction scores in the immediate aftermath of major weather events.” – J.D. Power 2018 U.S. Property Claims Satisfaction Study
So, what can insurers do to keep up with increasingly volatile risks while meeting ever-demanding business and customer satisfaction needs? The answer: Speed outreach through automation.
Efficiency is an asset to your event response operations
During catastrophes, operational efficiency is paramount to safeguarding and servicing insureds. Yet understanding which accounts have been, or could be, impacted by an event can be a complex, manual, and time-consuming exercise—leaving many insurers on their heels in reactionary mode versus being armed with the intelligence to provide proactive mitigation and outreach. This complex and reactionary event analysis workflow leads to inefficiencies, delays, and customer dissatisfaction. To successfully streamline claims and event response efforts, innovation is needed.
Over the next few weeks, we’ll look at some of the real-world event response struggles facing P&C insurers, MGAs, and brokers, such as operationalizing hazard and event data, manual workflows, and proactive customer outreach. We’ll also explain how integrating with automated event analysis technology streamlines the complex tasks involved with the event analysis workflow. By speeding access to insight, insurers can focus their efforts on mobilizing claims teams and insured outreach, rather than processing and operationalizing data.
Join us for this series as we discuss these topics:
- Data access: How disparate systems sabotage your event response
- Data frequency: Why P&C insurers need a better way to operationalize hazard data
- From manual to automated: How to make your event response workflow run like clockwork
- Automation requirements: 7 questions an automated event response solution should answer for you
Download our Event Response Guide to learn how automating parts of the event analysis and response process can take your operations from “react and respond” to “prepare and serve.”