It should come as no shock to our readers that the editorial staff at the Insurance Tech Insider – a group of nerds…err…individuals that quite literally derive pleasure from talking about advancements in insurance technology – is comprised of huge Star Wars fans. But we are…and we’re not ashamed of it.
That being said, we’re not exactly like other, non-insurance obsessed Star Wars fans. For example, when we saw A New Hope, we reacted quite differently from the rest of the viewers in our theater. While everyone else was cheering and smiling as Han and Luke had medals placed around their necks by Princess Leia, we were doubled over in our seats, crying.
Why? Because we couldn’t help but think about the poor insurance company that insured the Death Star.
We would assume that any government defense project of that magnitude would be at least, in part, privately insured. Depending on what the terrorism insurance situation was like in the Galactic Empire (because, let’s be honest here…the Rebel Alliance was basically a terrorist organization), that private insurer could have been on the hook for a lot of money – and quite possibly a REALLY bad quarter or fiscal year.
The real victim in all of that fighting a long time ago, in a galaxy far, far away? That poor insurance company.
It’s enough to make us wonder if the Galactic Empire was self-insuring the second Death Star that was blown up in Return of the Jedi. Let’s be honest, there’s no way any reputable insurance company worth its salt would have underwritten that policy a second time! Especially after the shoddy workmanship that led to the first one blowing up. Clearly someone fell asleep on the job when assessing the risk of that first Death Star – how could you not catch wide-open, proton torpedo-sized thermal exhaust ports?
Anyway, we digress. Here are this week’s top insurance news stories. AND MAY THE FOURTH BE WITH YOU!
Four ways to disrupt insurance with customer technology
Blake Morgan is a CX Futurist, author, keynote speaker and the author of he book, “More is More: How The Best Companies Go Farther and Work Harder To Create Knock Your Socks Off Customer Experiences.” She may not be very good at coming up with brief titles, but she knows a thing or two about customer experience and its impact on a company’s bottom line.
In this article that Blake contributed to Forbes, she discusses the importance of a digital presence for insurers. She also shares some bad news, “only 15 percent of customers say they are satisfied with their insurer’s digital experience.”
To help insurance companies get that number up, Blake offers an insurance tech framework that can help enterprising insurance companies utilize advanced technologies to help improve customer experience in four areas of their business: new customer acquisition, underwriting, claims and customer engagement.
Insurance is an increasingly competitive market, with many policy decisions being made on price. For companies to compete, they need an edge, and delivering a great customer experience could be just the “edge” required. Check Blake’s article out…her framework could come in handy for helping your company get ahead.
Insurance ripe for blockchain, costs and regulations weigh
If you’re like 90 percent of the population of the Planet Earth, you’ve invariably heard of blockchain technology. And – if you’re really like them – you have no idea what the heck it is.
The really simple answer is that it’s a digital ledger technology that makes it easier to track and verify the authority and veracity of transactions. That’s super simplistic, but, for the purpose of this article, adequate.
Anyway, in this Business Insurance article, they recap a recent analyst call organized by Fitch Ratings Inc., one of the “Big Three” credit rating companies. During that call, James Auden, a managing director at Fitch, discussed the possible benefits that blockchain technology could deliver to the insurance industry, which he claims includes expediting processes and improving customer satisfaction.
Despite these benefits, blockchain adoption in the industry remains somewhat stagnant. The author claims that this could be due to cost, and the need to make blockchain solutions work with legacy insurance systems. Regardless, expect to hear (even) more about blockchain in the insurance industry in the near future.
Insurer Sees Growth in Insurance Market for Telemedicine Providers
Telemedicine is pretty awesome. It can provide access to healthcare providers and specialists for people that may not otherwise be able to see them. If you live in a rural area without a local cardiologist, being able to see one via video teleconferencing can be a MUCH better alternative than driving hours for an appointment in the closest big city. But the benefits don’t end there.
Telemedicine is also considered to have a positive impact on cutting readmissions and improving outcome for patients since it can help drive increased patient engagement. It can also help cut healthcare costs by enabling members of a care team to collaborate and share information.
It’s easy to see why health insurers would be interested in driving up telemedicine adoption. It can help improve patient outcomes, decrease the need for repeat hospital visits and otherwise help cut the total cost of care. But there are other insurers that haven’t always been sold on it – namely the insurers providing coverage to the doctors.
However, Beazley has recently introduced insurance policies for telemedicine providers that can help fill the gaps that are created by the unique risks that come from delivering care via telemedicine. This is a great idea for Beazley, as the U.S. telemedicine industry is expected to reach $7B by 2020, and those providers will need insurance coverage.