Self-Service Apps Disrupt House Insurance Market – PropertyCasualty360
Almost 90% of carriers are working to improve the home insurance buying experience and almost 70% are doing it by making investments to change the buying process. (Image: Daniel Berkmann / Adobe Stock)
According to a study by LexisNexis Risk Solutions, a vast majority of insurance carriers, 93%, say self-service apps are having a huge impact on doing business today as consumers can now inspect and take measurements on their mobile devices.
Assessing the damage for a claim is the most common way policyholders use self-service apps, the study found. Freight forwarders reported that these programs do not eliminate manual reclamation processes, but they do help reduce costs and meet the growing demand for faster service and improved experiences, LexisNexis reported.
Virtual inspections and home surveys for new customers were the other most frequently used app functions besides surveying a home for damage.
In addition, 89% of carriers are working to improve the home insurance buying experience and nearly 70% are doing it by making investments to change the buying process. In addition to improving the customer experience, these carriers hope that these investments will increase profitability and reduce insurance costs.
"While the digital disruption to the home insurance buying process was foreseeable, the pandemic accelerated wearer needs and consumer demand for virtual interaction," said George Hosfield, senior director of home insurance at LexisNexis Risk Solutions, in a press release. “Carriers that 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; it's just the tip of the iceberg. Freight forwarders have the opportunity to improve the customer experience by using the information available to them to reduce time and costs, maximize efficiency and better understand their customers, the risks and the potential returns. "
As a result of the study, LexisNexis predicts that by 2022, more than two-thirds of the top 10 US home insurance carriers will guide their customers through the buying process using a largely automated approach. In addition, it is projected that only 10% of these insurance companies will conduct on-site inspections of most new policies.
“Even as home insurance automation continues to evolve, providers who use quality data to optimize their customer experience can offer an advisory and more trustworthy customer experience while positioning themselves for better segmentation and helping them make decisions faster. They will do this by both verifying and collecting data from the consumer, and by using prior insurance information to guide them to the correct coverage for that consumer, "said Hosfield.