The specialty insurance process is inherently complex, with insured interests exposed to fast changing risks, across the globe, and depending on countless organisations, capabilities and people.
The good news? The latest technology makes it possible for everyone across the specialty insurance ecosystem to be seamlessly connected, share data and insights in real time, and eliminate administration – reducing costs and delivering a better customer experience, creating much needed room for growth and innovation.
To consider a practical example, if a consignment of COVID-19 vaccines were produced by a factory in Belgium for a client in Gambia, it might travel by truck, train, plane and ship, with hand-offs in several jurisdictions before reaching its final destination. The array of insurance products and services for a risk like that is significant, as indeed, are the sheer number of insurance market participants involved: insureds, co-assureds, brokers, insurers, reinsurers, and local insurers. And when something goes wrong, the number of organisations and people involved expands further still.
So how could technology help? To start with, all parties involved in the insurance chain would be connected via an online platform: the vaccine producer, the insurance buyer, and the brokers, reinsurers and insurers. All participant, contract and insured interest data would be accessible to all on a shared online platform, providing complete transparency into the condition and exposure of the insured assets, and their exposures and covers.
Many of today’s administration tasks would be eliminated. If, for example, the value of insured assets changed due to a production or supply issue, the change in insured value would trigger the insurance contracts impacted to update automatically, notifying all parties of the change in risk and premium. Where documents are still a regulatory requirement, they would be auto generated. And where people had access to the data they needed on a connected, shared platform, they would stop relying on documents altogether.
Underwriters would have better data and insights than they’ve ever had about the underlying risks and exposures of their portfolios and prospects. Rather than wrestling with complex excel files as part of renewing a policy, or producing periodic reports, underwriters would be connected to a live data stream, providing insights on historic, current and predicted asset condition, exposure and behaviour. Underwriters would deepen their understanding of their client’s risks, and of their portfolio exposures, aiding underwriting decision-making. Back to the Covid-19 vaccines example, such a platform would provide real-time updates about the consignment – such as the condition of the vaccines, what type of transport they were on, the party responsible for the vaccines at that time, and environmental data impacting risk, such as temperature. It would also give an underwriter an accurate picture of aggregation exposures, helping them proactively manage out of tolerance exposures, for example around major transit hubs.
All of this would mean that manual admin was drastically reduced, costs were lowered, and insurers and brokers were freed up to spend more time on services that really add value for their clients. As for clients, they would receive services and products better suited to their needs, but most importantly, they would get what we all now expect: a great customer experience.
A connected specialty insurance market – where you can share data and transact easily with everyone along the chain, based on up-to-the-minute risk information – creates opportunity for everyone.
The question is, how would you look to create value:
Perhaps the toughest and most critical question is how to start executing. Those able to embrace technology ahead of the pack, will go further, faster. Whatever your take on how you differentiate, and create more value for your clients and partners, building towards a connected insurance experience will be a common characteristic of those that win. And connecting specialty insurance platforms will be the connecting tissue that makes it possible. In terms of how to start, the answer is simple: pick a problem or opportunity and get after it with working software. The first solution won’t be perfect, but execution is the best way to move towards what works better, and what transforms the value proposition for a business and its clients.
At Insurwave, our mission is to connect the specialty insurance market. We help insurers, brokers and insurance buyers create connected digital experiences, which eliminate administration, and create room for growth. If you’d like to find out more about how we could help you, sign up for a demo here.
“Modern tech will be the connecting tissue between these sectors, meeting the complex…