be an important tool to help deliver the
customer experience promise in the years
to come. Customers want both personalized contact and self-service capabilities,
and they want to be able to switch between the two seamlessly. The self-service
features of claims systems will enhance
customers’ ability to change channels
depending on their needs and even what
piece within their claim experience that
they are dealing with.
MacPhee: Consolidation in the market
— at all levels — is also going to be a key
factor in the evolution of the industry.
We have seen this consolidation within
the insurance market with mergers over
the previous years and anticipate that
that will continue. This isn’t limited to
insurance companies, but is being seen
throughout the business community,
including loss adjusters and service providers, even ourselves. Like any company
needing to adapt to changing market
needs and new technology, sometimes
the best move forward for the company is
to combine forces with others.
With change comes opportunities, and
our experts are already identifying what
they are and how systems can be implemented to expand their expertise to better serve their clients.
Hipp: The greatest opportunity will lie
where deep technical knowledge will be
valuable — such as cyber risk and climate
change, including their financial risk liability. These areas are highly technical
and complex in nature and require significant legal experience, which cannot
easily be replaced by automation.
Lyle: Without a doubt, cyber is the sin-
gle most prevalent risk facing small busi-
nesses today, and as such, it presents a
host of opportunity for carriers. At our
company, we’re already addressing this
opportunity by taking a proactive ap-
proach to cyber risk, with coverage that
complements and enhances standard
business insurance, and cyber security
and risk management apps that help pre-
pare organizations and prevent loss.
Hilyard: New products will continue to
emerge for new and changing risks, cre-
ating opportunity in areas such as cyber,
catastrophic loss, autonomous vehicles,
IOT, telematics, etc. Entirely new claims
methods and expertise are developing
and more will need to occur in the fu-
ture as consumer preferences morph. The
company(s) that can quickly illuminate
these opportunities and respond most ef-
fectively will win.
Fisher: There are two areas where I see
opportunities: cyber risks and climate
We are seeing more cyber claims being
managed by a smaller group of insurers.
Given the ever-increasing frequency of
cyberattacks and data breaches, coupled
with hostilities around the world, there is
no sign of the risk slowing down. We will
see a need for more capacity.
The other area is climate change. We
are starting to see claims on the liability
side where climate change is a factor in
both allegations and claimed damages.
Most of the claims are on the liability side
but we are going to see these claims on
the third-party side as well.
Underwriting these risks and devoting
capacity will be an issue for the domestic,
London and European markets for the
Preparing for the future while bal-
ancing the realities of today requires
planning, effective leadership and an in-
vestment in both people and technology.
The insurance industry is learning to
adapt much more quickly as new risks and
opportunity arise. Waiting until enough
actuarial data is accumulated or not keep-
ing up with technology means companies
run the risk of being left behind or losing
out to the competition. And as executives
identify new risks and opportunities, the
hope is that they are able to sleep a little
better at night knowing that the future is
a little more secure.
Patricia L. Harman ( email@example.com)
is the editor in chief of Claims magazine
and chairman of the America’s Claims
Executive Leadership Forum and Expo.
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