In 2017, we saw a number of lead generators for insurance carriers launch themselves online. While these seemed harmless at first, it quickly became clear that lead generation is not their end game. Instead, the ultimate goal of these startups is to eliminate the need for insurance carriers altogether.
Insurtech companies are utilizing end-to-end mobile insurance platforms where insureds can quickly find coverage simply by sending an image of what they need insured through the mobile app. Within seconds, insureds can secure the coverage they need, file claims, and pay claims. In short, insurtech companies are making a huge disruption to the traditional way of doing things in the property and casualty insurance industry.
While speed and convenience are two obvious benefits that Insurtech companies are able to offer, their lack of thorough underwriting could lead to challenges down the road.
How Underwriting Gives Insurance Carriers a Competitive Edge
From the carrier’s perspective, taking the time to carefully assess risk will help to minimize loss and preserve the company’s bottom line. We’re currently in an environment where declining profitability is a key challenge for the industry, and understanding risks upfront can help to correct this downward trend.
Underwriting also has the potential to strengthen relationships with insureds as well. Making an in-person property inspection part of the risk assessment process will give insurance carriers an opportunity to have face-to-face conversations with insureds and make them aware of ways that they can protect their properties.
While it’s convenient to use an insurtech company’s mobile platform to secure an insurance policy, the process lacks the human element that consumers crave. Making property inspections part of the risk analysis process will allow insurance carriers to humanize their brands and build a personal connection with insureds.
Our team of seasoned professionals at Insurance Risk Services has been partnering with insurance carriers for more than 35 years to provide them with accurate underwriting support. A key way that we’re able to accomplish this is through thorough in-person property inspections. When we meet with insureds, we represent our insurance carrier partners and serve as the face of the brand. This valuable face-to-face time helps to strengthen relationships and provides carriers with an opportunity to address other insurance needs.
Contact us at Insurance Risk Services to learn how we can help your business to gain a competitive edge over insurtech companies with underwriting.