P&C Insurers: Sustain Profitability through the Right Mix of Technology Tools

A study by Deep Customer Connections on agents for property and casualty carriers paints a clear picture on the current technology trends for this industry. The report reaffirms the fact that agents can achieve a higher level of success in their profession with adequate help from technology tools.

Though the P&C industry is faring better than other insurance segments at the moment, many carriers are missing opportunities to increase profits by cutting operational costs. Many P&C carriers are still relying on homegrown or legacy systems for policy administration and their internal processes. This decreases administrative productivity and also limits the extent to which agents can improve their performance.

An excerpt from an Insurance Networking News article that focused on the report:

Currently, agents are frustrated by many technology issues that cost them significant time in tasks—often clerical and repetitive in nature—and diminish their capacity to sell and service business, notes the report’s summary.

In order to sustain profitability and remain competitive in the face of the current tight market, carriers need to streamline their processes by identifying the right mix of technology tools. They need to consider the various needs of agents that can propel their overall performance along with administrative requirements.

Carriers need to treat this overhaul as an opportunity to identify the most suitable technology that can accommodate future business expansions and growth. Lagging behind on technology will take its toll through increased carrier expenses. And when cost-cutting and operational efficiency are foremost requirements, carriers cannot afford to find themselves in this situation.

P&C carriers need to consider some of these facts while evaluating technology.

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Tags: p&c insurance, technology for insurers
Categories: P&C Insurance
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The Staggering Financial Implications of Rebuilding Haiti

The recent disaster in Haiti has been sobering to consider. The loss of life has been tragic, and the need for medical care and supplies for survivors is nearly overwhelming. Thankfully, world-wide aid efforts have been impressive in mobilizing to care for those in need, and aid organizations continue to make strides to help the victims of this natural disaster.

As the disaster relief process for the Haiti earthquake aftermath continues, one figure that is particularly staggering is the projected cost to rebuild the country. A February 17, 2010, National Underwriter article indicated that estimates for rebuilding Haiti have approached $14 billion. And whereas a majority of United States homeowners purchase property and casualty (P&C) insurance coverage to protect against some of the financial costs of natural disasters, virtually no Haitians had this luxury.

According to a Munich Re expert, at the time of the earthquake Haiti had a P&C insurance penetration rate of less than 1 percent. While Haiti does belong to the Caribbean Catastrophe Risk Insurance Facility (CCRIF) pool, coverage from that pool is only around $8 million. The bulk of the burden for rebuilding the nation’s homes and infrastructure will fall on donors and other countries, as Haiti cannot afford to absorb this cost by itself.

These figures are cause to consider the implications to P&C insurers of protecting countries like Haiti, which is both located in a high-risk location (near the Enriquillo-Plaintain Garden fault zone) and one of the poorest countries in the world. Although risk is high and incomes are low, when disaster strikes, these countries are also the most in need of protection.

And the need for coverage against natural disasters shows no sign of slowing down: there has been a decade-over-decade trend of increased catastrophic events worldwide since the 1990s, with one expert predicting a similar increase into the 2010s. We have seen some of these recent disasters even in our own country. In light of this expectation, P&C insurers might consider examining their approach to high-risk locales, underrepresented groups and reinsurance.

When it comes to P&C insurance in Haiti, as well as insurance coverage in other high-risk, developing nations, what should we consider when thinking about how to protect these nations from financial disaster, while also guarding the insurer against excessive, unsustainable risk?

Tags: p&c insurance, haiti
Categories: General
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