As the world emerges from the pandemic, it is, in many ways both different and more resilient. And despite the many lessons learned, both in the personal and business arenas, the need for resiliency and adaptability is not going to fade with the last variant. There are many changes ahead for property and casualty insurance, particularly because people have discovered new needs and different ways of working and living. The key to preparing for these adjustments is putting the right technology in place now, so you can move and shift according to customer needs.
Changes Are Coming
Some changes the world of insurance policy administration is facing are due to current economic conditions while others are a direct result of people adjusting the way they work, live, and play. Here are a few examples of the kinds of changes that insurance companies need to be ready for.
Property Owners Dealing with a Housing Boom
Despite a range of dire predictions made regarding how the pandemic would impact virtually every sector of the economy, housing prices have been resilient. In fact, they are increasing. For property owners and real estate investors, this change could be simultaneously exciting and unsettling. Putting the right insurance policies in place, as well as managing their risk in this kind of housing ecosystem will require flexible, forward-thinking insurance solutions.
For example, to ensure a real estate investor is insulated against the effects of dramatic price swings, an insurance administrator can use predictive analytics software. With this kind of technology, the relevant data points can be automatically gathered and analyzed to come up with a variety of possible scenarios for the performance of an investment portfolio. Insides like these give property owners the flexibility they need to make balanced, pragmatic decisions, as well as face potential changes without fear.
Changes in Liability Insurance
For many businesses, liability insurance gives them a combination of confidence and comfort, and to maintain both agility and peace of mind, they have to have liability policies in tune with their current situation. Since the pandemic, that situation has changed.
While legal liabilities have always been a concern, the pandemic introduced a whole new level of fragility when it comes to contracts and anything related to supply chain issues. This is going to have a lasting impact on insurance policy administration. For example, many businesses have had to cancel or drastically adjust contracts just to remain solvent. Despite the wisdom of these kinds of decisions, they still expose business owners to potentially harmful legal liabilities, particularly because they can’t make good on promises put in black and white.
This has resulted in a significant mental shift when it comes to the risk assessments business owners have to make, and one of their most powerful tools is an agile liability insurance portfolio. With the right software tools, assessing the risk landscape, even in this complex, changing environment, can be relatively straightforward. Risk management solutions can coalesce large volumes of data and present them in a way that makes sense. Decision-makers can then use these actionable insights to steer the ship in a safe direction, avoiding troubled waters while still pursuing new growth horizons.
Remote and Hybrid Work Environments
The image of the prototypical successful business used to include expensive, expensive office space filled with diligent employees. While there will always be a need for office environments, this expectation is fading in the rearview mirror. Remote and hybrid work arrangements are going to result in dramatically different vehicle insurance requirements, both for businesses and individuals. Whether it’s due to the number of miles driven, the kinds of vehicles used, where people choose to live, or other factors, a wave of new policy changes and requests is headed your way. Are you ready?
The best way to prepare is to use a flexible software solution that provides a comprehensive view of policy data and options so you can meet subscribers where they’re at. With a system that both unifies data and makes it easier to present, you can easily manage a range of changes and new requests—all without sacrificing informative, considerate communication with clients.
Businesses Adjusting Their Employee Ecosystems
When a large portion of employees shifts out of the office and into remote or hybrid work ecosystems, the property and casualty insurance needs of businesses shift just as dramatically. For many organizations, this presents a diverse, potentially confusing assortment of complexities, and they’re going to need guidance to sort through it all.
After digitizing your processes, collecting and analyzing the range of data it takes to quantify the impact of remote and hybrid work environments is far easier and faster. Also, with the automation a digital solution makes possible, you can drastically reduce the risk of human error.
To step confidently into this novel terrain, you can use Ventiv Technology’s white paper, Brave New World, which outlines how digitizing core processes and management tools give you the agility you need to serve clients in an environment dominated by change. Download it today to get started.
