How P/C Insurers Can Sustain Growth And Improve Performance In 2014

In the wake of a slowly recovering economy inflicted by fierce competition and regulatory challenges, property-casualty insurers are tapping every available opportunity to improve underwriting discipline, drive operating efficiencies and leverage data and enhanced analytics to sustain growth and widen their performance advantage. A 2014 report released by Ernst & Young – U.S. Property-Casualty Insurance Outlook – claims so.

According to Ernst & Young, in 2014, property-casualty insurers must focus on the following key trends in order to protect their margins and improve operating efficiencies: [@PCITplus]

The Time For Transformation Is Now For Property/Casualty Insurers

P&C insurers should focus on gaining competitive advantage through technology transformation and workflow innovation, according to Deloitte

The P&C insurers witnessed momentous changes in 2013: rise on volume, comparatively modest catastrophe losses, and industry’s capital position reaching record levels paving the way to a stabilizing economy armed with strong capital positions. Deloitte, in their report entitled: 2014 Property and Casualty Insurance Industry Outlook – Transforming for growth – Innovation leading the way, corroborate the same.

However, the consulting firm also gave a heads up to P&C insurers substantiating the need for innovation in order to continue to adapt to the evolving demands of the consumer, even as the market seems to recover. [@PCITplus]

Agencies Set To Increase Tech Investments: What Carriers Should Know

Insurance agencies are expecting an increased tech investment especially in social media and improved management systems. Many agencies are taking this step following a strong growth in the industry.

An independent study conducted by the Independent Insurance Agents & Brokers of America (IIABA) showed that insurance industry-wide agencies, both small and large, are keen on increasing technology investments.

Smaller agencies with revenue under $5 million are targeting social media and Internet marketing in for their investments. But it should be noted that even though there has been a strong uptake in the social media sector, agencies will continue to face marketing challenges.

Technology in Insurance Enhances Consumer Experience

With the proliferation of tablets and smartphones, the insurance industry has witnessed a rise in e-commerce transactions and online communication with agents & brokers.  The technological revolution has changed the way consumers manage their insurance policies and led to the increased usage of e-mails, websites and social media to purchase policy & reach out to their broker for queries & grievances.

Superior online experience through web & electronic communication would reap long-term benefits to insurance providers in terms of consumer satisfaction as well as attracting new prospects, thereby leading to increased revenues. In recent years, state legislatures have been asked to modernize insurance regulations to meet the demand of consumers for paperless and online transactions. Earlier, certain antiquated laws prevented the effective use of technology. [twitter.com/PCITplus]