Digitization, automation and innovation are revolutionizing the US home insurance market, in response to a brand new examine by LexisNexis Danger Options – KPVI Information 6
ATLANTA, July 29, 2021 / PRNewswire / – LexisNexis® Risk Solutions, a leader in data, advanced analytics and technology for the insurance industry, today released the results of a new research study showing how disruption, innovation and the COVID-19 pandemic are affecting the US home insurance impact industry. The “Innovations Transforming the Home Insurance Buying Process” report shows how consumer expectations are evolving. As a result, insurance companies need to streamline their insurance purchase processes to modernize their customer experience.
To conduct the research, LexisNexis Risk Solutions asked the top 50 US home insurance carriers1 about the home insurance buying process. The results showed that shippers are prioritizing automation when purchasing home insurance as the impact of COVID-19 on claims activities persists. In addition, self-service apps, drone images, the gig economy and insurtechs are becoming market disruptors. Home insurance carriers can turn these market disruptions into opportunities by finding ways to use data analytics more effectively.
"While the digital disruption of the home insurance buying process was already foreseeable, the pandemic accelerated the needs of hauliers and consumer demand for virtual interaction," said George Hosfield, Senior Director of Home Insurance at LexisNexis Risk Solutions. “Freight forwarders who have not yet invested in automation need to act now to catch up with the market leaders. We see from this study and our conversations that this is only the tip of the iceberg. Freight forwarders have the opportunity to improve the customer experience by making the information available to reduce time and costs, maximize efficiency and better understand their customers, the risks and the potential returns. "
Innovation in the buying process for home insurance
To keep pace with consumer demand for a digital insurance experience, most U.S. home insurance carriers are relying more heavily on available data sources to reduce the questions asked during the policy purchase process and reduce personal inspections. According to a study:
- 67% are about to change their investments when buying home insurance.
- 43% have already made significant changes in the past two years.
The three main goals of these investments are:
- Customer Experience Improvement (77%)
- Increase in profitability (63%)
- Reduce insurance costs (53%)
As a result, the study predicts that by 2022, more than two-thirds (67%) of the top 10 US home insurance carriers will guide their customers to the best insurance options using a largely automated approach, and only 10% of those are demonstrating shippers on most new policies -On-site inspections by. Shippers also want to take advantage of automation to increase speed and reduce frustration for customers in the engagement process.
Digitization of the experience with home insurance
As the use of data prefill, advanced analytics, and aerial imagery increases, these solutions are transforming the home insurance industry. The insurance carriers pay attention to new market participants who close the current gaps in the product range of household insurance. To compete, 93% of carriers concerned about insurtechs invest in digital and mobile capabilities, product innovations, and ways to improve the customer experience.
Transport company challenges and outlook
The current challenges and priorities for home insurance carriers vary depending on the size of the carrier. Overall, the top concern is the loss of target customers due to price, followed by the cost of home inspections, agent churn, and the time it takes to get a quote. Looking ahead to the next three to five years, carriers are concerned about rising customer expectations and increasing use of websites and comparative advisors.
"As home insurance automation continues to evolve, providers who use quality data to optimize their customer experience will be able to provide an advisory and more trustworthy customer experience while positioning themselves for better segmentation and helping them make decisions." faster to hit. You will. " It does this by both validating data and collecting data from the consumer and using previous insurance information to guide them to the correct coverage for that consumer, "said Hosfield." Today more than ever, freight forwarders need to evaluate their home insurance process to see where improvement is needed Weather and roof conditions will be best positioned to compete in the post-pandemic market. "
Click here to read more about the report on Innovations to Transform the Home Insurance Buying Process.
Visit LexisNexis Home Insurance Solutions to learn more about the company's offerings.
About LexisNexis Risk Solutions
LexisNexis Risk Solutions leverages the power of data and advanced analytics to deliver insights that help businesses and government agencies reduce risk and improve decisions to benefit people around the world. We provide data and technology solutions for a variety of industries including insurance, financial services, healthcare, and government. Headquarters in the subway Atlanta, Georgia, we have offices around the world and are part of RELX (LSE: REL / NYSE: RELX), a global provider of information and analysis to professional and business clients in all industries. For more information, please visit www.risk.lexisnexis.com and www.relx.com.
1 Top 50 property / casualty freight forwarders listed in the 2017 NAIC market share report.
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