Over the past few years, the home insurance industry has experienced a slow transformation towards more automation. Over the past year, however, the COVID pandemic expedited disruption and caused the transformation to accelerate in just a few months. This digital transformation has led to the rise of self-service apps and the use of aerial imagery and drones for inspections during claims and underwriting processes.
To learn more about how COVID-19 was having an impact on home insurance buying trends, LexisNexis® Risk Solutions commissioned a third-party survey of the top 50 U.S. property insurance carriers. The full report, Innovative Trends Accelerating the Home Insurance Buying Process, is available for download.
Carriers report that they expect to make at least some changes to their long-term home insurance strategy in response to COVID-19. Almost half of carriers surveyed plan to include use of digital and automation technologies to not only attract new customers, but also enhance customer experience and improve their own internal processes.
Additionally, not only have insurers experienced increases in claims activities, but they have also had to adjust their new business processes, including inspections. To comply with social distancing protocols, carriers had to perform inspections remotely, leading to an increase in adoption of new technologies like video tools or aerial and drone imagery. Moving forward, only 10% of the responding carriers expect to continue conducting on-site inspections for most new business by next year.
The home insurance industry is experiencing an extraordinary sea change, especially over the last year. Digital transformation is changing the way consumers buy homes – and home insurance. Carriers who stay abreast of shifting demands and innovation will better anticipate customer needs and respond to disruptions in the market.
If you would like to read more findings from our survey, download Trends Accelerating the Home Insurance Buying Process today.
This blog is the third and final in a series about our survey on innovations transforming the home insurance buying process. Other blogs in this series are listed to the right.