The future of claims in 2030: 3 shifts that will reshape the P&C industry

Looking ahead to 2030, the P&C insurance industry will function very differently as compared to today

Earlier this summer during a panel discussion titled, 'A Look into the Crystal Ball — Navigating the P&C Value Chain of 2030,' industry experts from Clearcover, Lightspeed, Slide, Zurich, and Snapsheet's President, Andy Cohen, gathered at Insurtech Insights NY to explore the future of the P&C value chain. This insightful session examined the anticipated changes and consistencies in distribution, underwriting, and claims management over the next seven years.

The panelists agreed innovations throughout the entire process will prioritize efficiency, customer engagement, and risk mitigation. However, the central focus remains on enhancing the customer experience from quote to claims payment and harnessing predictive capabilities to prevent losses before they occur.

Join us as we unpack the key takeaways from this transformative session, offering valuable insights into the technology shifts shaping the future of P&C insurance. Discover the 3 major insights from the discussion that could reshape the industry landscape.

1 - Partnerships Between Insurers and Insureds Will Grow

Insurers and policyholders will work together more closely as risk mitigation and prevention partners. With the help of technology,  insurers will have the tools they need to gain better insights into individual risks, such as using address-level ratings for homeowners coverage and individual driver scores from telematics in personal auto insurance. 

These advancements are only the start of personalized coverage that gives individuals a more accurate price for the risks they present. 

Cohen highlighted the opportunities and changes in underwriting that will lead to this type of individual risk lifestyle policy, saying, "As we fast forward 7 years, the opportunity is on the underwriting side to preselect risk, reprice risk, update policies with things that matter, and sign up for a more continuous lifestyle policy."

As he described, a continuous lifestyle policy will appeal to people who want a policy that adapts and adjusts with their changing needs, and one that is priced according to the actual risk they present. 

2 - Virtual Claims Handling Will Increase 

"On a claims front in personal lines, the last year and a half has been challenging. The pessimist in me sees incumbents returning to how they used to do things. The optimist in me says seven years ago less than 1% of all auto claims were handled virtually, last year was just under 30%, fast forward seven years and it will be close to 80%,” Cohen explained. 

There are a number of ways for insurers to digitize their customers' experience when it comes to personal auto claims. While some claims can be processed using digital tools entirely, others might still require some touchpoints with adjusters, although these cases will be less frequent.

As digital products continue to improve, customers will become more comfortable handling complex tasks, like insurance claims, on their mobile devices. The key to streamlining the claims process is a user-friendly interface that makes the FNOL process quick, easy, and intuitive.

According to Cohen's prediction, having a strong claims management platform after the FNOL is essential. This platform should be capable of providing coverage information, detecting potential fraud, sending automated messages, staying updated with compliance requirements, adjusting reserves, and issuing timely payments. With such a platform in place, the majority of claims can be automated.

3 - Generative AI Will Transform Policy Administration and Claims

Generative AI models create new content based on existing data. This new content could be audio, video, text, code, images, and simulations. The entertainment use cases alone are endless, with new games, art, and videos possible instantly. But there are also valuable business opportunities to explore with generative AI.

Cohen is enthusiastic about the possibilities generative AI will create within the insurance industry. "Our thesis is that generative AI is going to be super transformational around policy. Whether it is automated or not depends on the experience the carrier and customer want,” he explained. 

“Having the infrastructure and operating model in claims to operationalize AI is what companies should focus on right now. Adjusters can help customers in times of need instead of keying info across various systems. We need operating model changes and new processes."

Shifting from a traditional model to one that incorporates generative AI can reshape the way we analyze data, enabling us to make faster, more informed decisions. This shift will significantly enhance the underwriting and claims process. With AI handling data insights, carriers can redirect their focus toward addressing customer needs, ensuring their experience meets their expectations.

Transformative Technology Now and in The Future 

Today’s technology helps insurers simplify and streamline their distribution, underwriting, and claims processes — and we can only expect it to go up from here. By implementing an insurance software solution, like Snapsheet’s Claims Management Software, claims cycle time can be reduced, efficiency can be increased, and costs can be lowered, allowing adjusters to focus on more important tasks.

If you’re looking to experience the benefits of transformative technology that is reshaping the insurance industry, reach out to our team and book a demo to see how Snapsheet can help elevate your claims processes!