Agents & brokers are on the front lines of business continuity for their clients. This position isn’t a convenience; it’s a necessity.
The coronavirus is set to peak in the United States this month. The expanding pandemic represents unprecedented challenges that await the business insurance sector:
- – How to handle what P&C360 calls the oncoming “CLAIMS TSUNAMI,” or dramatic influx of commercial lines insurance claims?
- – How to regain control and grow the business in an uncertain and rapidly changing world?
- – Where and when to implement new technology, AI, and predictive analytics?
Claims are on the Rise
Liability claims are sure to swell in the coming months, and this will be a challenge for brokers and carriers to settle. One of the scenarios that Louie Castoria suggests in his blog article 7 STEPS TO PREPARE FOR THE CORONAVIRUS CLAIM TSUNAMI is the use of AI. An application for AI is comparing claim histories with market indices. Agents & brokers can leverage data to make critical decisions on reserves and rates without guesswork and in much less time with the help of intelligent and user-friendly analytics tools available in the market today. Across the industry, we see firms with these tools already in place, responding rather than reacting to the challenges of work-from-home, shifting workforce across business units, and outsourcing.
Small Business Impacted
The nationwide WORKFORCE IS DOWN 26 MILLION coming into the last week of April, according to unemployment statistics provided by NPR. The data is literally off the charts, and if it’s any indication, the fallout for insurers will be equally severe.
As business interruption claims swell, and businesses consume the Federal Government funding programs under the CARES ACT, brokers have a chance to become more resilient under these circumstances.
The incorporation of tools such as data analytics and AI can dramatically transform how the insurance sector responds to changes in the market. Keeping agents and carriers one step ahead. Providing insight so that these organizations can identify, monitor and analyze key information, and can help to shape product offerings that are relevant and timely.
Attention to Detail
During a crisis, the financial impact of incoming claims, the performance of loss control visits, exposures of renewals, and clients’ peace of mind are all achievable with the right software platform. Assessing the risks before they happen is possible, and its part of the evolution of the art and science of insurance. COVID-19 has awakened the industry to the importance of predictive analytics, a variety of data sources, and the ease at which users can access, analyze, and model this data. We may be entering an era where spreadsheets just aren’t powerful enough.