July, 22 2021
Industry Challenge
Mental health is a major concern as employees return to the office
What: A recent study from The Hartford found that 31% of US employers believe that the strain on employee mental health is having a significant financial impact, and 52% said that substance misuse or addiction is causing workplace issues. Both figures are about 20% higher than March 2020.
Why it matters: As much as it’s an unpleasant aspect of business to think about, there’s a strong correlation between mental health issues and workplace violence claims. The pandemic worsened this landscape quite a bit, and this is but one example of how that shift is going to significantly impact risks.
Industry Challenge
What’s next for Cyber?
What: For so long Cyber coverage has been a great bet for insurers, but that all changed in 2020. Now, insurers are facing a risk that is harder to rate and forecast, and has a much higher payout than was anticipated. Rates are up, loss prevention is growing, and underwriting is more stringent, but the question remains – is it enough?
Why it matters: Cyber coverage is likely to shift to a more preventative approach. Much like a good fire prevention system makes Property coverage cheaper and employee training makes Workers’ Comp cheaper, expect cyber training and security tools/policies to become a necessity for acquiring affordable Cyber coverage.
Read: Cyber Underwriting Changes: Is It Too Little, Too Late?
Industry Challenge
The digital experience gap for insurers is growing between the “haves” and the “have-nots”
What: ACORD recently screened over 1250 insurers to assess how good their digital customer experience is, based on two factors: engagement (providing a compelling experience) and enablement (ability to satisfy customer needs). Overall, the industry has improved, but the gap between the top and bottom insurers has widened.
Why it matters: Insurtechs are taking divergent paths when it comes to the experience gap problem; some are trying to take advantage of the gap to cut out traditional insurers, while others are aiming to help less advanced insurers leapfrog and compete with those at the top. We at Dais believe insurers are well-suited to take advantage of new technology, and by working with companies like Deep Customer Connections, we’re helping insurers close the digital experience gap.
Read: Digital Customer Experience Study: US Personal Lines 2021
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