Inflation forcing premium increases and exposure uncertainty
Rising inflation is forcing insurers to consider rate adequacy. When determining insurance premiums, insurers consider the cost to repair or replace things such as business property, equipment, and vehicles. When the costs for those rise, the price of insurance premiums often increase with it.
From 2017 through 2020, premium rates rose 11.4% on average across the U.S.
But inflation isn’t the only reason for the spike—the pandemic-driven supply-chain disruptions are also adding to the mix. Rising costs for building materials, the chip shortage, labor costs and more are adding to the bottom line and insurers are adjusting policyholders’ premiums accordingly. For businesses that could be an additional financial burden; a hit to the bottom line that may force them to realign their priorities.
For insurers, increased efficiency and better risk insights can help control costs and ensure price adequacy in addition to gaining a competitive advantage. To solve for this, insurers are turning to Convr, an AI underwriting platform that digitizes and fuses submissions with best sources of data to surface underwriting insights, business classification and risk scores. With Convr, commercial insurance operations gain efficiency in their underwriting operations, transparency on submission data—including loss run information, and consistency through their workflows.
To sum it up, we facilitate low touch, error free underwriting for commercial carriers of all sizes. Convr removes operational burden from underwriting staff, allowing resources to focus where their talents are needed most instead of wasting hours doing administrative work. Convr also offers access to third party data that integrates, enhances, and facilitates the entire process from submission to decision.
The results? Convr provides a frictionless underwriting experience, delivers more accurate data to reduce an insurers’ loss ratio and provides world-class customer engagement. Convr’s AI-enhanced underwriting data platform benefits employees, management, producers, and customers. Implementations usually take less than 90 days.