Well, they've done it. Majesco just traced the history of insurance from Hammurabi's Code up to the present day in two paragraphs flat. We're talking about the 2016 Majesco Report, of course. And the history they acknowledge isn't insignificant. If there's one thing that's always been true of insurance, it's the "universal and timeless need to stabilize individuals and the economy against risk, while meeting the changing needs and adapting to new developments or technologies that changed and shifted businesses, markets and risk." At each moment, doing so "required business leaders to shed sacred notions and wake up to the possibilities of rebuilding on a new foundation while maintaining the old structure long enough to move out safely."
You can see where they're going with this. There are changes afoot in the industry – big ones. One might even call them seismic. And it's going to take more than a few minor adjustments for insurers to adapt.
Who's driving insurance industry change?
Majesco broke it into three categories.
People: changes in demographics, needs and risk profiles, and customer expectations
Technology: emerging tech and the explosion of data availability and analytics
Market boundaries: new competitors, the blurring of insurance with other industries, and the shifting and expansion of channels
What does that change look like?
Over the last five decades or so, we've watched singly-defined industries turn into vibrant business ecosystems. We've seen previously-siloed products evolve into connected, multi-purpose offerings. We've seen zero-sum-game competition supplanted by strategic cooperation between competitors. We've seen buying turn to sharing, and users become co-creators.
Did we mention these changes were seismic?
The powerful market shift they've conspired to bring about is unprecedented; in fact, they're rewriting the fundamentals of the business. At a time like this, long-held assumptions must be set on the table, reevaluated, in some cases dismantled and replaced. In the new, porous insurance market we navigate today, "engagement is everything," and the relationships between the various players that be are "the new chemistry behind marketing glue."
How should insurers respond?
The need for risk management is as old as Hammurabi. (Older.) What's new is the need to tailor insurance products to the interconnected landscape of products and businesses that exists today. Majesco recommended:
Let customers control which items to insure, when and for how long
Let customers leverage buying power by forming their own risk groups
Streamline the sales process by combining insurance products with those of other businesses
Leverage emerging tech to help customers prevent losses in the first place
Expand and integrate the channels in which coverage is offered
The FedNat Insured Web is a great tool for our insureds!
They like having a centralized location to view policy info, make payments, upload policy documents, and elect to become paperless to receive a discount.
The insureds also can file a First Notice of Loss for a claim and access exiting claim info. Silvervine recently enhanced the site which allows insureds to upload policy documents directly to their policy. The uploaded docs go directly into our workflows and save a lot of manual effort on our part.
From my visits with agents, the agents appreciate the app for the amount of time saved on having to download and attach photos directly to the policy.
The app can also reduce the amount of staff required for a busy office to fulfill underwriting requests for photos.
When training agents they are amazed at how quickly the photos attach directly to the policy. After taking photos using the app and before they make it back to their desk, the photo is already attached to the policy. They also like the ability to attach additional photos for pre-existing damage.
Customer Service is seeing an improvement with retention as the text message definitely triggers phone calls from insureds to make payments.
The insureds love the fact that we notify them on their phones because they state that sometimes they don’t receive their mail for various reasons.
The insureds are paying more attention to the texts then to their actual mail. We try to set all of our customers up on that option if we notice that they are not currently enrolled, as it builds great customer relations as well as retention.
As a company we have adopted the use of Policy Scan for all our policies, and our agents have adopted the use of the app as well.
Not only is it easy to use, there is also no more worrying about losing photos, having to store photos or photos being attached to the wrong policy.
With Policy Scan we have increased efficiency in our workflow and reduced our exposure on the risk.
Silvervine’s core administration solutions easily handles multiple carriers within multiple states, including accounting, payment processing, immediate policy issuance and endorsements.
What started out writing one product, one line in one state has now grown into mulitple products, multiple lines and writing in multiple states. We have over $95 million in annualized premium in-force and we expect to grow by 20% during the next year all serviced by Silvervine.
Silvervine was our insurance software system of choice when we started the company in 2006. Silvervine enabled us to begin business within a few months of licensing the company. Today, we are one of the top 20 homeowner’s writers in Texas and SIlvervine’s solutions have been an integral part of our success.