How firms can use know-how for optimum business insurance – entrepreneurs

The opinions of entrepreneurs' contributors are their own.

For many people, the only type of insurance they consider essential is health insurance, and that's because of the public attention this type of insurance is receiving in the media and in public discourse. Of course also because health is something that people deal with and feel on a daily basis. For an entrepreneur, however, business insurance is another type of insurance that is of great importance. As the past year has shown, business disruptions can occur unexpectedly and on an unprecedented scale. Hence, getting the best insurance is vital for your business.

Fortunately, technological innovations have also improved the business insurance offerings, making them much more valuable. Here are some that can help you take advantage of the trend and get the ideal policy for your business.

AI for claims processing and communication

Artificial intelligence is ubiquitous these days, and for good reason. When properly deployed, advanced machine learning algorithms can access huge data sets and make decisions that are much more accurate and, what is of vital importance to you, the business owner, much faster than traditional human-driven analysis. In insurance, this applies to two main areas – claims processing and communication with customers. In the first case, insurance companies use AI analytics to analyze insurance claims and make decisions about how to react to them. For example, a claim could be found to be fraudulent and warrant further investigation. In the second case, businesses can use chatbots or similar tools to simplify the reporting process so that business owners can quickly report any claims or issues they have and get prompt responses.

Both of these are critical to business owners as each additional day of downtime means increased loss of money and customers. It is critical to make sure that you get your business insurance from a company that is able to handle inquiries and make all necessary payments promptly, even in the event of a widespread disaster.

Related: What Every Entrepreneur Needs To Know About Artificial Intelligence

APIs and personalization

For a long time, application program interfaces (APIs) were reserved exclusively for nerdy tech startups in order to automatically exchange information with one another. In the meantime, many large companies have also stepped into the action and are now creating their own APIs and enabling other companies to integrate them into their systems in a limited and controlled manner. This enables a lot, especially the ability of other companies to develop new business models based on the data provided and to work with the insurance company to develop new functions and customer benefits. Think of fitness companies that share the health data they get from tracking devices, which helps insurance companies improve their risk assessment.

There's also the fact that companies can now share more detailed data to receive personalized business insurance quotes tailored to their specific needs, rather than just ticking boxes on a form and receiving generic packages. Now insurance companies are ready to tailor their offerings to specific customers and use the information available to them to make decisions that offer much more value to both parties.

Similar: How APIs can help restore customer relationships in the future

Online marketplaces, affordability and improved service

One of the most fundamental, but important and enduring, aspects of the internet is the way it has democratized access to information and made it easy for people to get detailed updates on things that were previously hard to find, such as insurance terms and conditions. Previously hidden behind a screen as trade secrets, business owners can now find all the information they need to make informed decisions about the right supplier. The conditions offered by different providers are aggregated in several places on the Internet and entrepreneurs must take the opportunity to compare their options and make the best choice.

This open competition, as analyzed by PWC in this report, has resulted in lower prices, but has also resulted in insurance providers becoming more service-minded in order to get good reviews from customers. The combination of these factors gives business owners a voice in the transaction and the ability to achieve better terms than in the past.

Similar: How artificial intelligence will shape our future

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