Use AI to Place Coverage Faster in a Hardening Insurance Market

Artificial Intelligence - December 8 2020

Accelerating time to revenue is critical to the bottom line in a hardening market characterized by higher premiums and reduced coverage options. With rates increasing across various commercial lines, being able to quickly and efficiently review, evaluate, and identify the best coverage and pricing for your commercial clients is a priority.

In a special report titled Commercial Insurance Market Is Hardening published in May 2020, Fitch Ratings stated that they expect continued rate hardening in the commercial insurance market and that non-life commercial insurance providers have reported double-digit price increases for a variety of lines of business across all major global regions for 2019. They also predict that commercial insurers will be hit hard by pandemic-related losses through the first half of 2021. Event cancellation as well as credit and surety policies are expected to be particularly impacted.

Different insurance lines are being affected in different ways. Some insurance providers are changing their underwriting guidelines, the way they underwrite risk, tightening new business guidelines, and increasing premium rates, causing insurers to review their portfolios and adjust their risk appetite to maintain healthy books of business. With more selective underwriting and new competitive realities making it tough for find appropriate coverage for challenging classes of business, it’s taking agencies and brokerages longer to place insurance coverages for their clients.

“We are probably expecting to see hardening market conditions continue into next year,” said Kent Rowe, President of the Insurance Brokers Association of Canada. Commercial brokers right now are experiencing a hardening market,” he said. “I think that is the best way to classify it. We are seeing some increases in rates and some capacity challenges on commercial lines risks. That exists right across the country.” [Source: Canadian Underwriter]

With insurers requesting more information upfront at the time of submission and the time-consuming process of reviewing multiple responses to identify the best coverage and price for policyholders, the manual, painstakingly time-consuming process of requesting and reviewing multiple quotes is no longer sustainable for agents and brokers.

New market conditions are forcing agencies and brokerages to commit more time to providing one-on-one customer advice, strengthen carrier-broker and broker-insured relationships, and deliver faster, more transparent communication. With policyholders requiring more guidance on new coverage requirements like cyber insurance, business interruption claims, and renewals where premium rates are being affected, brokers need to focus 100% of their time on their customers’ needs and placing business quickly and efficiently. One way to achieve this is to spend less time on manual, paper-laden tasks that can be automated and streamlined like reviewing and comparing carrier quotes.

Agencies and brokerages that embrace technology are securing business faster and delivering a better customer experience. Using artificial intelligence (AI) to intelligently automate and streamline the process of reviewing quotes saves enormous amounts of time, enabling agencies and brokerages to pinpoint and place the right coverage and pricing for their customers faster.

Accelerate Quote Comparison with AI

Whether its new business or a renewal, AI solutions purpose-built for insurance enable agencies and brokerages to compare up to 10 quotes at once. Agents and brokers can conduct on-screen, side-by-side comparisons of premiums, endorsements, limits, etc., and quickly compare multiple lines in a commercial package policy, saving valuable time, effort, and resources.

Agents and brokers focused on maintaining their trusted advisor status, especially in commercial lines which has been hit hard by COVID-19, should consider automating and streamlining business processes like quote comparison to free up their time to work closely with customers on building extensive submissions capable of securing the best coverage for their clients.

Here are three ways artificial intelligence can digitally transform carrier quote comparison:

1. Automate and Streamline

Stop spending copious amounts of time manually reviewing and rekeying data from multiple carrier quotes into spreadsheets. AI solutions powered by Natural Language Processing (NLP) and Machine Learning (ML) can automatically read, extract, and interpret unstructured data in quotes hundreds of times faster than a human. With the ability to extract more than 500 insurance-specific data points in seconds this eliminates the need to spend countless hours manually reviewing, extracting, and rekeying data from multiple carrier quotes.

 

2. Increase Sales Capacity

 

Free up your staff to focus on providing customer advice and selling. AI-powered intelligent automation has an immediate impact by automating time-consuming, non-value-add administrative processes, speeding up the entire end-to-end experience from quote-to-bind. By leveraging AI solutions that speak the language of insurance, staff can auto-compare up to 10 carrier quotes at once, review premiums, endorsements, limits, terms & conditions, policy start date, policy end date, etc. at a glance on screen, and quickly compare multiple lines within a commercial package policy.

3. Enhance the Customer Experience

The world has changed. Customers expect faster than ever responses and transparent communication. By giving your knowledge workers the tools to automate administrative tasks like quote comparison, they can focus their attention on a service-first approach – nurturing carrier and policyholder relationships, providing rapid responses, and concentrating on more strategic initiatives for your organization. AI drives smart operational efficiency and eliminates barriers to growth, allowing agencies and brokerages to stay laser focused on delivering an exceptional customer experience.

Want to place coverage faster while delivering an exceptional customer experience?

Schedule a demo of Chisel AI Quote Compare or download our Quote Compare data sheet to see how you can transform your existing processes to increase your sales capacity, place coverage faster, optimize the customer experience, and boost operational efficiencies in a hardening insurance market.

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