A UXer’s Perspective on the Future of Underwriting and Insurance
There’s a common perception that insurance carriers may not necessarily have the consumer’s best interests at heart. People worry, for instance, about paying high premiums, dealing with inefficient claims processes, and having their claims rejected. Carriers, on the other hand, want to ensure that they are charging sufficient premiums to underwrite risk and maintain a healthy loss ratio. How can insurers balance these competing interests and retain their customers?
Leveraging technology to make underwriting and claims handling more efficient benefits carriers, but might not necessarily help them in getting new accounts or improving their public relations. Things like real-time risk analytics, predictive analytics, and claims automation don’t always resonate with consumers who are primarily interested in saving money and good customer service. The solution is to adopt a broader perspective that also accounts for the needs of the insured. As a UX practitioner in the P&C space, I have to help carriers find that sweet spot where consumers feel comfortable with paying an appropriate and fair premium and confident while filing a claim. The key is to emphasize relationship management and customer advocacy at the core of all proposed solutions.
“We’ve had clients that have a cheaper quote from a carrier, and they chose one with the higher premium just because of the service factor that they get when they have a claim, or when they have to call them for billing questions and problems.” ~ Research interview with a commercial line broker
As a UXer, I’ve come to realize that business value should not just account for meeting a carrier’s goals and needs, but should also be extended to their policyholders and all other people involved. Guidewire is a customer-centric company, and as such, I treat our solutions more like B2B2C rather than B2B. This means that when I’m writing use cases as part of my design process, I adopt the same empathy for the insured that informs my work on underwriters, claim agents, and brokers. An example of one such use case is your typical underwriting evaluation process. If underwriters are provided measures to mitigate and prevent risk for the insured’s business, it will not only help them to reduce loss and write the risk appropriately, but will also improve the carrier’s relationship with their consumer. This might include something as simple as recommending the installation of fire extinguishers if located far from a fire station. Emphasis on human-centric design will help insurance carriers change the industry’s perception, gain people’s trust, and leave consumers feeling comfortable with their insurance purchases.
Industry carriers are embracing technological transformation as a way to enhance their user experience. This includes areas such as risk mitigation/prevention, prospect management, automated claims processes, and relationship management. While these changes are necessary and welcome, it’s equally important that we be sensitive to the needs and wants of consumers. Designing for the P&C space requires a degree of empathy and a commitment to promoting customer advocacy alongside technological innovation. What this looks like will depend on how the industry evolves. We might see carriers, for instance, proactively approaching consumers to provide the best premiums at competitive prices using things like risk analytics and loss history. But that’s an article for another day!
