2021 was a tough year for the insurance industry, characterised by hard market conditions, high premiums and higher claim-rejection rates. As we enter the new year, never has the need to restore customer faith and minimise losses been more important for underwriting agencies and insurers alike.

Light is now on the horizon for the industry at large, as most insurers anticipate an accelerating economic recovery and additional technology investments in 2022. To capitalise on the opportunities at play, underwriting agencies will need to be nimbler, work faster and make customer service their top priority in the new year.  

Read on for how your organisation can restore customer faith to maximise outcomes – with confidence.  

Demonstrate the value of data 

The explosion of data available to underwriting agencies has well and truly shifted the traditional underwriting approach. First-in-class performers are putting distance between themselves and their competitors by leveraging data and analytics to demonstrate substantial value to customers.  

This very use of data is transforming the journey of customers across the breadth of the industry. Many insurers now combine online interfaces with self-service capabilities and the ability to track in real time instead of claimants having to enquire via ‘traditional’ communication methods, such as phone or email.  

Through utilising data-led insights in underwriting transactions, you can increase your customer’s confidence that their portfolio is accurately assessed for exposures, covered for the unique environment that they operate within and future-proofed for the ever-changing risk landscape.  

Increase the use of cloud and AI throughout the process end-to-end 

Many legacy underwriting systems were designed to connect workflows, rather than harvest data around transactions – but this is changing, with the use of cloud and artificial intelligence (AI) in the claims lifecycle.  

 Underwriting agencies who are moving to a more robust analysis of risk attributes and applying a more dynamic approach to their evaluations are gaining insights that allow them to not only respond to but stay ahead of changing market conditions. With digitalised underwriting, leading insurers have seen loss ratios improve three to five points and retention in profitable segments jump 5 to 10 per cent, according to McKinsey & Company insights.  

The use of AI and cloud is only expected to increase in popularity across the coming years – and for underwriting agencies, harvesting the functions of cloud-based platforms and AI can now increase productivity and allow you to thrive in the dynamic and digital era.  

Human connection remains paramount  

The value of human connection should not be understated in restoring customer confidence post-pandemic. It is a well-known fact that insurers and underwriters that offer best-in-class customer experiences grow faster and more profitably – and underwriting agencies that deliver high levels of service and excel at communication and interpersonal skills are well equipped to restore any negative customer sentiment of the past two years. 

Superior customer service, combined with the effective use of technology, can transform the journey for your claimants. However, to deliver above-and-beyond customer service requires a relentless approach day-in and day-out – from visiting the website to calling an underwriting agency, customers see all touchpoints as important pieces of the claims-management pie.  

To learn how to capitalise on the opportunities at play and make customer service your top priority, connect with James Needs at james_needs@gbtpa.com.au.  

 

Blog Author

James Needs

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