Insurance is not the same as it was 50 years ago. With the changes in technology and the way people use it, the insurance industry is changing to keep up with the needs of its policyholders. Consumer behavior is changing and along with it the expectation that businesses run smoothly and quickly across all industries. This puts pressure on insurance agencies to digitize their customer’s experience, and offer products that aren’t as traditional as what your grandparents may have had.
1. Insurance Needs to Be Accessible Online
While the fundamentals of insurance haven’t changed, the way that consumers prefer to receive their information has. People today prefer to complete transactions online as opposed to making multiple appointments at an office. People also expect to get information quickly and to have shorter turnaround times than were seen in previous generations.
It’s clear that the younger generations are demanding digital options to access and change their insurance policies. According to The Geneva Association, in their paper Insurance in the Digital Age, distribution channels are changing in response to these preferences. Online automobile insurance policies have been around for ages. SE2 enables insurance carriers to offer their customers an end-to-end digital experience. Even claims processes are becoming more digitized and streamlined with online document uploads and app usage.
2. Cyber Liability is a Business Necessity
Today, there are many insurance products that exist because technology has changed the needs of the population. Cyber liability insurance is a great example of such a product. Cyber liability insurance helps to cover some of the costs of a breach including business interruption, reputation management, ransomware costs, and computer repair and restoration. This product was created specifically to help protect companies that store personal information online that was getting hacked into.
Cybersecurity is a very serious concern for many people. With more information stored online every year, people want to know that their information is safe. Unfortunately, there are times where systems are hacked and a breach occurs. Cyber liability insurance is absolutely necessary for businesses storing sensitive information of any kind on servers or clouds. SE2 Enterprise Security Engineer, Saul Schwartz, says, “We’re responsible for multiple carriers’ business-critical data, so defending it is a top priority.”
3. Income-Protection Insurance Is Changing
There used to be one type of business interruption insurance, and it went into effect when your business lost income due to a disaster. If you didn’t have a brick-and-mortar store that this applied to, then there weren’t that many options. Today, however, technology is changing the way people run and own businesses. Many business owners make a living online and they don’t have a physical store to insure.
As a result, different insurance products have been created to help protect the loss of income from other types of disasters. If you sell on eBay or on Amazon’s FBA platform, for example, you may need seller suspension insurance in case your account gets suspended or shut down. In 2017 the first-ever insurance for online sellers became available to cover income lost for online sellers due to a suspension or deactivation of their account. As this type of insurance progressed, some carriers even started offering a service to help sellers get their accounts reinstated.
The ways in which we use technology are constantly changing and industries have to change with it in order to stay relevant. Digitization offers many advantages such as lower overhead and more effective use of capital. It also allows companies to create products that are more customer-centric, affordable, and efficient. One of the great advantages of technology in the role of insurance is that it has allowed insurers to move from just protecting risk, to also predicting and preventing risk as well.