This is the first in a series of blog posts looking at how U.S. commercial insurance professionals are responding to current and emerging market trends.
A new year; a new start. Whether you’re still on track with your new year’s resolutions or not, you’re likely still thinking about where you can make meaningful progress in your business this year. How can your organization maintain or improve profitability? What digital capabilities can help you achieve a competitive advantage? How can you better manage legacy technology migrations? And how can you deliver a more compelling customer experience?
A lot of questions, and no easy answers. So, to better understand how commercial insurers are dealing with these pressures, LexisNexis® Risk Solutions commissioned a third-party survey of 412 U.S. insurance professionals. We asked for their perspectives on―and action toward―five focus areas with direct bearing on their current business.
Our latest report reveals key insights from the survey that demonstrate clear gaps within current processes and capabilities that can be turned into actionable opportunities for small commercial insurers to be successful in 2019 and beyond. Based on the study, we identified the following insights for each of the five topics:
- Automation lags behind desired levels, and levels haven’t improved over the past couple of years. In fact, 89 percent of insurance professionals responding to the survey reported the need to manually re-evaluate insurance applications and, as a result, the degree of manual work required in commercial underwriting continues to be the leading pain point.
- Valued data assets are used inconsistently. While insurance carrier respondents state that consumer credit (77 percent) and commercial credit (76 percent) information offer them the most valuable competitive advantage, only 40 percent of them have integrated these data sets into their standard workflow. Instead, they’re relying on public records and Internet searches.
- Predictive modeling is also used inconsistently. 81 percent of commercial carrier respondents believe predictive modeling is important to their commercial underwriting, pricing and rating. They also believe predictive modeling can improve risk assessment and support more consistent decision-making. Yet, only a third currently use it consistently.
- The customer experience needs improvement. The top three factors commercial insurance carriers identify as important to the customer experience are faster turnaround time (90%), improved accuracy of customer data (85%) and being consultative with customers (84%). What’s interesting is that these same factors that are viewed as important to the customer experience are also the areas that the vast majority of carriers see as needing improvement.
- Carriers want to embrace important market trends. There are many external factors that can impact business strategy. According to commercial insurers, telematics, Internet of things (IoT), data breaches and sharing platforms are seen to be the most likely to impact their business. Along with identifying relevant emerging trends, the study also asked commercial carriers to characterize each as a threat or opportunity.
Wondering how you compare with your peers? Complete this quick assessment and download the full report – A Time of Change in Small Commercial Insurance: Turning gaps into opportunities.
Turn gaps into opportunities
These insights demonstrate the clear gaps within insurers’ current process and capabilities that can be turned into actionable opportunities. With so many factors impacting the business, however, it can be difficult for carriers to know where to start. We can help! For more information, download our Tip Sheet, call us at 800.458.9197 or email us at firstname.lastname@example.org.