Property & Casualty Insurance Companies: Shifting Business Strategies to Spur Up Stability and Growth
The insurance industry that delves into various business lines, is today harnessing shifting business strategies to spur up growth and stability in the Property & Casualty sector. Inniti Alliance P & C Claims Management and Processing Solution provides a straight-through approach that can truly cut unnecessary cycles from the claims operation. And from claim entry to triggering decisions among multiple parties and formats, Inniti provides the capture, analyze and connectivity platforms for better service and performance, reduced costs and improved fraud detection.
Recently, Thomas Everett, Panel Expert for Property & Casualty insurance line, reviewed a study (report) on commercial underwriting in the insurance industry, which reveals that U.S. based Property & Casualty (P&C) insurers are taking new approaches to risk assessment and acceptance to sustain profitable growth in their business. The study, commissioned by World Insurance Report, was designed to assess the strategic direction and readiness of the commercial underwriting market, from both business and technology perspectives.
The study also established the fact that P&C insurance companies are cherry-picking to make the strategic shift towards ‘flow and ‘transaction’ underwriting to build competitive advantage and gain profitable market shares.
Putting some light on the underwriting process, Thomas Everett said, “Flow underwriting promotes straight through underwriting for risk assessments that were previously underwritten through manual, subjective evaluation by underwriters. The ‘low’ or ‘no touch’ transaction approach is supported by automated or analytical decision support capabilities so that only ‘exceptions’ are processed by underwriters. This underwriting approach reduces cost and saves time, and also enables consistency and controlled underwriting”.
Also, the low and no touch underwriting approaches enable underwriters to focus on more complex risk submissions and develop the market through enhanced distributor interactions.
The reviewed study uncovered by our Insurance Panel Expert states that developing and deploying business process management capabilities was a key business goal for P & C insurance companies of all sizes.
The World Insurance Report 2016–17 additionally revealed the following interesting data points:
· Almost half of the respondents (49%) felt that Business Process Management (BPM) and modernization of Legacy Systems/Platforms were their main IT priorities.
· While, 15% of respondents listed IT cost reduction as a priority; only 11% listed infrastructure consolidation as a top priority.
· Nearly 50% of respondents plan to upgrade their organization’s claim handling capabilities and revamp the processing systems through BPM over the next 15 months.
“This research clearly indicates that the P&C commercial insurance market is at a point of inflection as carriers are demonstrating a change in mindset towards the way they underwrite commercial lines risks,” said Thomas Everett. He further continued that “Inniti’s goal is to help insurance companies build their market presence and capabilities, with our integrated and interactive claims solution. Our analytical dashboards for P&C insurers are readily able to adopt innovative risk profiling and predictive modeling techniques to leverage both internal and external data for better decision making.”
When it boils down to Property & Casualty insurance claims processing, the speed of settlement and process transparency are the key contributors to customer loyalty, thus spurring stability and growth for your business.