Table of Contents
Canadian Underwriter -
Canadian auto insurers have been slow to embrace usage-based insurance (UBI), but telematics is only the beginning of a data-driven revolution that is poised to transform insurance. Insurers would be well-advised to develop UBI offerings now to seize an advantage and remain competitive in future.
App for That
Canadian property and casualty insurers have started dipping their toes in the app pool, providing customers with a few options related to home and auto insurance. But current offerings skim the surface, with the potential of mobile apps running far deeper.
The share of e-commerce premiums is small today in most markets, but things are changing. Advances in technology are already playing an important part in framing consumers' expectations of how they want to browse, shop and be served by insurers.
Predictive analytics to address issues such as claims fraud, underwriting and customer segmentation can help leverage business intelligence tools to create predictive models to more effectively and accurately make business decisions.
Canada has entered the telematics arena, with several stakeholders offering usage-based insurance (UBI) programs. Commoditization, privacy and consumer demands are sure to become even more frequent topics than they already are.
The risk landscape is changing, demanding that stakeholders adopt a wider view of what constitutes risk and how different risks can work together.
Fraud Rings Beware
The insurance industry needs to take additional actions to stop the significant problem of losses caused by individual fraudsters and organized crime rings. New technological advances have made it possible to analyze untapped data and shift the fight against fraud from the claim to the claimant.
A look back on the worst flood in the history of Alberta shows that even now, some homeowners, businesses and schools are still in the process of rebuilding. Restoration efforts at a town house complex in High River shows that restoration efforts can be complicated, making mitigation and prevention all the more important in the wake of increasingly common extreme weather.
Use of predictive modelling is on the rise, an encouraging development in light of its promise to improve underwriting, pricing, claim management and other core functions. That said, overall use of predictive modelling fluctuates significantly by line of business and company size.
Going paperless offers the promise of some significant efficiencies and costs savings. Combining different solutions, however, can provide brokers the biggest bang for the buck.
Cyber insurance coverage is entering the next phase in its evolution from optional add-on product to increasingly important component of a thorough risk management program. As high-profile data security breaches grab top headlines, more organizations are having the "cyber talk" with their brokers and insurance partners. The pace of product adoption, however, is slow grind rather than big bang.
Moves & Views
One goal for Ted Harman - who keeps himself busy running a brokerage in Montreal while also serving local, provincial and national organizations - is to make it easier for brokers to send data from their computer systems to those of insurers.