Insurance News: Getting closer to home and customers
Risks faced by insurance customers in their homes, vehicles, and activities of daily living are growing in complexity. While insurers have mechanisms in place to assess and price coverage across many known areas of risk, other areas remain open-ended.
In this Insurance News Analysis, Abbey Compton and I discuss the first-of-its-kind ordinance in San Jose, California. If it survives its court challenges, residents who own guns would be required to have liability coverage in their homeowners or renters policies. As this reframing of the gun debate catches on in other U.S. cities, it will blur the already permeable line between public policy and insurance.
Regulators are also getting involved as the costs of homeowners and renters policies rise for apartment blocks and condos. In the wake of deadly events like the 2017 Grenfell fire in London and the Surfside condo collapse in Florida last year, many residents now find insurance unaffordable. Underinsurance can leave customers in real financial hardship following a loss.
Fortunately, data from the growing digitization of homes, wearable devices, and onboard systems in vehicles offer opportunities for behavior-based insurance models. A technology infrastructure that accommodates customer-generated data will help insurers deliver relevant offers to customers at a market-competitive price.
Insurance has always been a means of stability and security for families and communities. That point is especially important as we think about insurance workforce transformation. Millennial and Gen Z workers value community and a brand purpose that activates around social good. Insurers can use this common purpose to pivot recruitment strategies and appeal to younger workers.
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