Pricing pressure and challenging market conditions are making growth more difficult for P&C insurers:
- Meeting growing customer satisfaction demands and reducing expenses requires a more efficient event response and claims process
- This is especially evident due to more frequent and extreme perils, particularly in parts of the US more susceptible to the effects of climate change
Globally, the combined insured losses for 2017 and 2018 resulting from natural catastrophes were the highest ever for a two-year period at $219 billion, with a large percentage of those losses in North America.
Certainly, it feels like parts of the US are increasingly a target for Mother Nature. The number of insurance claims caused by natural catastrophes in the US reached 5.2 million in 2017 with claims totaling nearly $102 billion. Chubb recently reported the average claims cost for flood increased 550 percent in the last 5 years, underscoring the need for increased efficiency and capacity in managing and responding to catastrophe events.
Likewise, a 2018 JD Power claims study showed that “Areas hit hardest by weather events show declining satisfaction.” Texas and Florida, in particular, show declining customer satisfaction scores in the aftermath of weather-related events.
“When Hurricanes such as Florence and Michael occur, it shines a light on those [insurance] companies that are able to deliver on that commitment at great scale, and those that miss the mark.” -Tom Super, director of the insurance practice, J.D. Power
So, what can you do to keep up with increasingly volatile risks while meeting ever-demanding business and customer satisfaction needs?
It’s simple: create operational efficiency.
Efficiency is an asset to your event response operations
The event response workflow has a lot of moving parts—especially when you’re trying to accomplish them manually. This can lead to inefficiencies, delays, and customer dissatisfaction. There’s a difference between a well-oiled machine and a machine that’s just chugging along reacting to events rather than preparing and mitigating for them.
To successfully streamline event response efforts, innovation is needed. And that means integrating with automated event response technology. As you may well know, the event response process is actually quite complex, so it might not seem simple to make it more efficient. But, we’re here to bust that myth.
Throughout this month, we’ll take a look at some of the real-world event response struggles facing P&C insurers, MGAs, and brokers today, such as operationalizing data, manual workflows, and proactive customer outreach. We’ll discuss how integrating automation can take your event response operations from “react and respond” to “prepare and serve.”
Join us for this 4-part series as we discuss these topics:
- Data access: How disparate systems sabotage your event response
- Data frequency: Keeping up with all the data (& making sense of it)
- 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
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