The Next Big Thing in Business Insurance

Covid-19 caused massive changes in just about every aspect of our global society. No country was untouched or unaffected, and no industry was, either. The insurance industry is no different. People and businesses were directly affected in various ways by the pandemic, causing more claims to be filed for some types of coverage, and fewer for other types. 

However, possibly the biggest change in our world, beyond the fact that everyone is getting vaccinated and wearing masks to the grocery store, is how much we can do remotely. Employees stayed home and realized they didn’t need to go to the office. The digitization of our lives accelerated during the pandemic, and there’s no going back. The business insurance industry is affected just like everyone else. Digitization, technology, and other Covid-19 factors will play a part in shaping the industry going forward into 2022 and beyond. 

AI and Faster Claims Processing 

The role of technology and the internet will go well beyond being able to buy business insurance online in minutes. While that is an amazing advancement in this digital age, there is much more to come. 

To start, artificial intelligence can be used in a number of ways with business insurance. AI and robotic processes will be able to provide more data and analyze faster than an insurance agent or adjuster. AI will work to eliminate or minimize fraud. These processes will be able to more accurately assess the likelihood of risk in certain locations and situations. These functions could potentially reduce the cost to the consumer, and make it easier to both purchase insurance and submit claims. 

AI and bots will be able to not just process claims, but also answer questions faster, more accurately, and more efficiently than humans can. For instance, if you have a question about your policy, you may have to wait on the phone or for a virtual agent to answer you. With bots, you can get an answer in seconds at any time of day, even if it’s the middle of the night. 

These technologies allow for insurance company employees to work virtually, make operations more efficient, and reduce costs. All of this should lead to lower prices for consumers, along with the need to compete in a crowded marketplace. 

Increased Personalization

For a long time, insurance was very much a one-size-fits-all industry. Policies were ridgid, and consumers had to work hard to find what they specifically wanted or cross their fingers they didn’t need a certain protection. However, what Covid-19 has created is an environment of personalization for consumers. This is most apparent with the retail industry. Customers can now pick and choose exactly what they want through online retailers and have it brought to their home, picked up at a physical location, or picked up at the curb of that location. 

This is going to extend to insurance as well. Insurance options will be more flexible, where you can pick and choose exactly what you want and need from your insurance. It will very much work like the online retailers that you might already use. You add options into your shopping cart, and pick “buy” when you are ready. Then, if you need an addition or a change, you can go through a similar process to have it done immediately. 

Proactiveness

With personal insurance, providers are starting to make use of wearable technology and remote technology to determine risk. Those who have healthy lifestyles, as proven by their wearable tech, can not only get better premiums, but issues can be caught sooner based on the analytics taken from their applications. For automobile insurance, companies are asking customers to use a track on their vehicles to track safe and dangerous driving, and offering discounts and charging increases based on that data. Companies no longer have to wait for claims to know if a person is a bigger risk. 

These same concepts will start to be introduced into business insurance. As opposed to wearable technology, security systems and sensors can be placed on building premises. Drones and other imaging technology can more accurately assess the risks associated with properties, and provide quick and detailed analytics regarding how much to charge based on the data. On a regular basis, insurance providers can get alerts based on possible risks or safety issues at a business. Again, these can cause rates for certain insurance buyers to drop, but they can cause increases for others. 

Increased Focus on Data Protection

In our digital world, and with so many people working remotely, there is more data than ever being stored in the cloud. Plus, consumers are using payment services and credit cards more than ever before. This means that businesses need to be careful about their storage methods, including password protection and encryption. Cyber attacks are not going away, 

That means that businesses will need to have insurance to protect themselves against losses from data breaches. If there is a breach, then customers, staff, suppliers, and anyone else whose data a business has in their possession could file suit. Not only that, but businesses can suffer massive reputational damage from it. Insurance companies will need to offer a wide variety of options for businesses that store sensitive data. Along with providing liability insurance, they could possibly offer business interruption insurance for these situations. 

The entire world has changed since the onset of Covid-19, whether we like it or not. The way we live our lives and the way we interact as human beings are completely different from just two short years ago. The extended effects of these massive shifts in human interaction has changed every industry in some way, and the business insurance industry is included. 

Insurance providers must start to provide more of what customers want than they have in the past. With so many options online, there is no room for the status quo if they want to compete in a crowded marketplace. As a business owner, you need to prepare yourself, your staff, and yourself properly for what is to come to minimize your risks and keep your premiums as low as possible.