March 2, 2023
What: As the insurance sector transitions to a predict-and-prevent model, agents and brokers must equip themselves with the knowledge and skills to explain and deliver this value-add approach to their customers. Driven by technologies such as sensors, artificial intelligence and analytics, insurers are now able to predict and prevent losses before they occur, rather than simply providing reactive coverage for claims.
Why it Matters: This shift is important because it can help build customer loyalty and create new opportunities to sell additional services through regular touchpoints. Insurance is often seen as a “set and forget” expense, but with this model, policyholders can be more actively engaged in their insurance, and benefit from preventative measures to reduce their risk.
What: State Farm is offering over one million free Ting sensors to customers to help detect electrical hazards in their homes, which is the second leading cause of home fires according to the National Fire Protection Association. Whisker Labs, the maker of the Ting sensor, provides a $1,000 credit toward remediation of electrical fire hazards and has already identified 3,000 electrical hazards with the help of the Ting sensors.
Why it matters: Data is a powerful tool, and the more you have the more creative you can be. Ting and other IoT devices are creating new data for carriers that can open up new insurance products for their policyholders, tailored to their specific needs.
What: Allstate is taking a series of actions to improve the margins in its auto insurance business, following the posting of a 110.1 combined ratio. These actions include raising rates, reducing expenses, and modifying claims handling practices. It is aiming for an auto insurance combined ratio target in the mid-90s and is filing for yet additional rate increases and taking other underwriting actions in its three largest states: California, New York, and New Jersey.
Why it matters: Quality data, meaningful insights, and speed-to-market are all key components to improving loss ratios for modern insurers. Data quality is paramount, as is the ability to generate insights that can inform underwriting and business decisions. Finally, the best insights are nothing without the ability to get a product to market quickly. Dais is focused on these pillars, bringing in quality data partners, leveraging UnderwriteGPT to uncover valuable insights, and enabling insurers to launch products in less than 30 days.
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