Insurers move cautiously when embracing automation and other tech tools, and for good reason. As technology changes the insurance industry, challenges arise that appear in few other verticals.
A customer purchasing auto insurance lives somewhere, in a house or an apartment that needs homeowners’ or renters’ insurance. A customer seeking homeowners’ or renters’ insurance might have a vehicle or two parked out front. And how many of these individuals also run their own business ventures?
Preferring simple and fast transactions, consumer preferences for purchasing products and services, including property and casualty insurance, are shifting to online buying.
Currently, 73% of consumers want online purchasing, but in the U.S., a single insurer is racking up 70% of online direct-to-consumer profits.[i]
When most people think of Valentine’s Day, they picture candlelight, soft music and maybe a glass of wine.
Evolving trends have finally combined to make 2018 the year of digital transformation in the P&C insurance industry.
President Trump’s much publicized Tax Cuts and Jobs Act (TCJA) was passed in December of 2017. Some companies reacted quickly to the reduction in the corporate tax rate, including The Hartford and Travelers, who announced plans to offer bonuses to employees netting less than $75,000 annually.
According to George Westerman with the MIT Sloan Initiative on the Digital Economy, “When digital transformation is done right, it’s like a caterpillar turning into a butterfly, but when done wrong, all you have is a really fast caterpillar.”
In response to changing consumer expectations and preferences, Rick Huckstep, insurance industry influencer and chairman at The Digital Insurer, sees insurers evolving from the , where risk and premium move from brokers and agents to carriers and then reinsurers.[i] Huckstep envisions an emerging new industry order built around the customer, where trusted insurers own relationships and automation makes it easier to do business.[ii]