Five investment ideas to stimulate next year's results
Right now, many insurance companies are planning their investments for 2021. This annual process is unusually difficult this year, and not just because of the pandemic. This post continues our series on unfortunate choices that various insurance companies may include in their plans for next year. Today we will look at commercial and specialty companies.
Why is it so difficult to make reliable predictions about 2021 investments for commercial and specialty companies right now?
- Customers have been disproportionately affected by the pandemic. This effect is also ongoing, which means that it is not resolved.
- As companies recover, digital aspects of shopping, delivery and service will be more important than in the world before COVID.
- While affiliate sales and service will remain dominant, providing digital features to market, drive sales and provide services will become a necessity.
To move forward with these trends next year, commercial and specialty companies should consider investing in one of five key areas:
- Reengineer nuclear insurance process  With the expected pressure on premiums from lost business, carriers will need to improve both costs and loss ratios with core business changes. Fortunately, carriers can choose from a variety of proven advanced tools to improve the efficiency and effectiveness of drawing. These include redesign with a focus on improving data quality, insurance accuracy and automation for both new business and renewal processes. Small business owners did not realize that they were not covered for a pandemic. To be successful after the pandemic, carriers must create transparent digital experiences that enable customers to find them, explore how products meet their needs, and provide boarding, claims, and trust-building service experiences. Agents can still play an important role in serving customers, but operators need free digital strategies to connect with their customers.
- Transforming Core Platforms
While many operators have migrated to modern systems management systems, others remain. With the need to support sales and service across multiple channels in the future, if you have not replaced your platform yet, 2021 is the year to start. New platforms can reduce total cost of ownership, provide the backbone for new products, and support multiple distribution and service channels. They need to be chosen carefully to ensure that future business plans for the future and that you do not just transfer a process from 1990 to a new platform.
- Release Intelligent Warranty
With policy costs below $ 10,000 (and often below $ 1,500) and a successful sales rate of 10 percent, it is important for new business and renewal subscriptions to be as automated as possible. But automation only works if the insurance methods are set to ensure that the right data is used from the submission to match the coverage to the needs of the consumers. Intelligent tools such as advanced third-party computer tools, analytical models and intelligent robotics can dramatically increase automation while maintaining or improving the quality of the warranty. The key here is that carriers must be willing to go beyond simple rule handling and data sets with 100 percent filling and 100 percent accuracy.
- Embrace Innovative Solutions
Today, the data and services of medium and large commercial companies are no longer provided solely within their walls. They rely on trusted partners to provide key services such as payroll, accounting and technology and sales platforms. These partners have the data and insights that enable you to create innovative solutions for their customers. They have the exact number of employees in the company. If you had a solution that would benefit all parties, you could offer an innovative compensation policy for workers who no longer required review. These are the future solutions where insurance is integrated with larger services. So, 2021, take the time to research, explore and stand up at least one innovative solution.
It's never too early to plan for next year – especially after so much disruption. Hopefully these ideas will give you a head start on getting your business forward in 2021. And if you need help shaping, refining or implementing any of these I would love to hear from you.
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