Mom always said you're supposed to share. But sharing doesn't come without consequence – and in the insurance industry, the implications of the sharing economy are getting bigger all the time.
The sharing economy is growing
Last December, NAIC said that "nearly one-fifth of American consumers participate in some form of sharing economy activity," according to a PwC study.
According to Cedent CEO Michael Ian Coles, the keynote speaker at the 2017 World Captive Forum, within the next 20 years the sharing economy is projected to reach $300 billion in premiums annually.
As sharing gains traction, new technologies like drones and satellite imagery are going to make an impact on claims management and underwriting. In auto insurance, liability will shift from the driver to the manufacturer. At the same time, the industry will face a new set of exposures: "cyber, political risk, terrorism, product liability, supply chain risk — we haven’t begun to even develop products for these things yet," Coles said.
As one WCF attendee put it, this year is going to be a major tipping point for sharing – and the industry, which has “reached a standstill” according to Coles, will have to get a lot more agile to navigate a whole new era of insurance liabilities and products.
Where to start? Uber Technologies leader Bus Fuldner identified two places to focus: technology and regulation. "Technology can be deployed to better quantify and manage risk and improve underwriting and claims adjustments," he said, while regulators "should play a major role in moving toward this future by ... testing new ideas and products."
You have to be agile to share
As the tech guru Richard Stallman said, "Sharing is good, and with digital technology, sharing is easy." Well, with the right digital technology at least. Sharing is not easy with a legacy insurance software system.
A recent article by Accenture put it this way: "With dozens of new startups entering the insurance industry every year and changing customer expectations, growth is becoming a challenge for carriers with inflexible legacy infrastructures and for small firms without the appropriate resources to make necessary changes and stay competitive."
The results from their latest survey included gems like these:
Half of insurance execs (50 percent) say current tech processes are getting in the way of their business objectives - incremental change will not suffice
Six in ten insurers (60 percent) replace their legacy systems every 3-6 years
One in ten (10 percent) use no legacy tech at all - meaning you can differentiate yourself from 90 percent of the competition simply by making the move to faster, more robust, more secure technology
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.