Laser focus on insurers' bottom-lines is key in CAT-prone areas

Laser | September 17, 2019

The catastrophic property insurance market has had trouble the past few years. With the market firming as a result of adverse loss development, there is temptation for insurance distributors to focus on top-line growth over bottom-line income. It can be challenging for insurance carriers and brokers to be cost competitive in coastal markets, according to Bryan Schofield, senior vice president of commercial lines at Orchid Insurance, a specialty underwriter of catastrophic property insurance. With significant wind and storm surge exposures, strong underwriting disciplines and thoughtful distribution are key in these areas. “There’s always someone out there who is undisciplined and more worried about the top line than the bottom line,” he told Insurance Business. “Since Orchid is an underwriting organization with CAT expertise, our emphasis is on preserving profit and making money for our carrier partners by aligning cost to exposure.

Spotlight

IBM Insurance Global Managing Director Sandip Patel explores how Data is the new natural resource transforming the insurance industry. This discussion is part of a blog series titled, Digital Transformation in the Insurance Industry.

Spotlight

IBM Insurance Global Managing Director Sandip Patel explores how Data is the new natural resource transforming the insurance industry. This discussion is part of a blog series titled, Digital Transformation in the Insurance Industry.

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CLAIMS

Donegal Insurance Group Selects CoreLogic’s Leading Property & Casualty Claims Workflow and Management Solution

CoreLogic, Donegal Insurance Group | March 01, 2021

CoreLogic®, a leading global property data and analytics-driven solutions provider, today announced that Donegal Insurance Group, a family of property and casualty insurance companies, has chosen CoreLogic as the innovation provider to control and streamline their property claims operations and help improve the policyholder experience. “Donegal is known for its superior claims service and takes pride in being ‘There When It Matters Most’ for its policyholders,” said Bob McCafferty, VP of Claims for Donegal Insurance Group. “By engaging with CoreLogic and leveraging their Claims Platform, we will be able to further enhance the customer experience. Using the tools and integrations available through CoreLogic, we can keep customers connected and informed throughout the claims process. In many cases, our claim representatives can quickly estimate damages from their desk, resulting in faster settlements and higher levels of customer satisfaction.” CoreLogic conveys solutions across guaranteeing, claims and risk management that enable insurance carriers to give a convincing digital policyholder experience and unrivaled ease of utilization through each touchpoint in the property insurance environment. Its exceptional approach to join all parts of the insurance workflow onto one cloud-native simultaneous platform, improves on claims measure, enables innovation agility through top tier InsurTech and integrates production network sellers with a flip of a switch. The cloud-based insurance hub utilizes a safe and open architecture enabled by an industry-leading API framework, making it easy for customers to associate with a large group of innovative outsider InsurTech solutions through the CoreLogic Digital Hub Alliance. “We have been fortunate that many insurance companies are turning to CoreLogic as they look to deliver a better experience with more efficient claims handling and ease of integration with their key suppliers and third-party technologies,” said Frank Martell, president and CEO, CoreLogic. “This newest collaboration with Donegal demonstrates CoreLogic’s future growth and transformation in the insurance sector to significantly improve the customer experience at their most critical moment of need.” About CoreLogic CoreLogic, the leading provider of property insights and solutions, promotes a healthy housing market and thriving communities. Through its enhanced property data solutions, services and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies and other housing market participants to help millions of people find, buy and protect their homes.

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INSURANCE TECHNOLOGY

P&C Insurer Digital Investments Cannot Offset Rising Rates, Finds J.D.Power

P&C | May 30, 2022

Rising rates have overwhelmed the simplified user experience, smooth customer service, and enhanced navigation that were intended to define the digital revolution of the property and casualty (P&C) insurance industry—and boost consumer happiness. The J.D. Power 2022 U.S. Insurance Digital Experience StudySM released, shows that even though insurers have put a lot of money into websites and mobile apps for customers, customer satisfaction with insurers' digital services is going down this year. Although insurers keep upping the ante on technology, improvements are being offset by frustration among customers who are going online to shop for a better rate—and not finding one. We’re also seeing a clear trend in which more than half of digital insurance shoppers choose not to use digital tools or educational resources to help them through the shopping process. This further exacerbates the decline in customer satisfaction.” Robert M. Lajdziak, Director of Insurance Intelligence at J.D. Power. The research, which was updated this year, assesses digital consumer experiences among both P&C insurance purchasers seeking quotations and existing customers performing routine policy-servicing tasks. The study looks at four elements that affect the functionality of desktop, mobile web, and mobile apps: ease of navigation, speed, visual appeal, and information/content. Corporate Insight, a renowned provider of competitive intelligence and user experience research to the financial services and healthcare industries, collaborated on the project. Key findings of the 2022 studies are as follows: Customer satisfaction with the P&C insurer's digital purchasing experience is only 499 out of 1,000, down 16 points from a year ago. Overall, customers are satisfied with their digital service experience at 705, down one point from 2021. Customer dissatisfaction with escalating rates and the inability to obtain premium cost relief by searching for a new policy is driving the fall in shopping satisfaction. Digital shopping tools, which help insurance consumers find discounts, policy details, and specific coverage or unique advantages, are linked to a satisfaction rise of 137-211 points, depending on which shopping tool is utilized. However, during their quotation requests, 54% of insurance shoppers did not use any shopping tools. The study reveals considerable discrepancies in mobile app performance when it comes to account service. The average satisfaction score for the top 25% of respondents who use a mobile app is 885, which is much higher than any other channel. However, satisfaction with a mobile app among the bottom 25% of respondents drops 358 points to 527. Traditional insurers and digital native InsurTech firms both have similar levels of consumer satisfaction with digital account servicing. Traditional carriers make up the difference with better information/content and access to human support when customers need it. While InsurTechs outperform on speed and visual appeal metrics, traditional carriers make up the difference with better information/content and access to human support when customers need it.

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RISK MANAGEMENT

Ahoy! Launches Recreational Boating Insurance for the Boating Industry

Ahoy | June 09, 2022

Ahoy!®, the new digital insurance MGA for recreational boating, today announced the introduction of its industry-first technology-driven insurance product. Ahoy! was created by boaters for boaters, and it blends proactive, risk-reducing technology with its founders' extensive expertise of both boating and insurance to provide cutting-edge insurance products for the twenty-first century. Ahoyinsurance !'s policies will be available directly and through agents in Michigan, Arizona, Ohio, Wisconsin, and Illinois, with plans to expand across the US in the coming months, thanks to a partnership with Spinnaker Insurance Company, a national property and casualty insurer rated A- (Excellent) by A.M. Best Company, and with backing from specialist reinsurers Greenlight Re and Topsail Re. Traditional insurance firms have failed to adapt to the special needs of today's boater, and they frequently bundle boat insurance with other home insurance policies. Ahoymain !'s focus is on this underserved market, leveraging technology to help secure boaters' vessels and provide peace of mind, transforming what was traditionally considered as a reactive and protective asset. Ahoyteam !'s is made up of naval veterans, insurance specialists, and seasoned high-tech leaders who have pooled their knowledge to build a comprehensive digital insurance product customized to boaters' specific needs. Ahoy! has also put together an advisory board that includes Matthias Weber, the former Chief Underwriting Officer of SwissRe. A boat isn't just another piece of property, it's a lifestyle choice. It's where you create memories, where you escape to when you need a little serenity or the place to run to for some excitement. We're boaters, we get that, Ahoy! offers a new kind of boat insurance, not only insuring boats but providing technological tools that help boaters proactively avoid risk. Ahoy! gives boaters peace of mind knowing their needs and concerns are addressed by fellow boaters and they can rest assured that their treasured vessels will be protected and ready to enjoy at any time." Ahoy! CEO and Co-Founder, Amit Nisenbaum. Customers of Ahoy! receive an onboard smart boat kit that works in conjunction with a proprietary mobile app to provide advanced telemetry capabilities that help proactively decrease risk and avoid damage or injury, as well as a phone overboard protection insurance. The smartphone app will eventually contain a digital logbook and data collecting for future travels, as well as notifications such as grounding avoidance, theft recovery aid, and micro-targeted weather alerts and forecasts. Millions of certified insurance brokers in the United States may now offer customised boating coverage to their customers faster and more readily thanks to Ahoy!, which is offered through independent agencies and directly online.

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