The time-tested axiom in risk management: “If it’s predictable, it’s preventable,”¹ holds true today in the business of property and casualty insurance claims. What’s impressive is that we can take that axiom and energize it with artificial intelligence, machine learning, and natural language processing.
The insurance industry has long struggled to effectively serve Small-Medium Business (SMB). The cumbersome and inefficient process of buying business insurance doesn’t suit the needs of SMB’s, nor does it suit the expense structure of insurers and brokers. Consequently, affordable and convenient insurance options for SMB’s are limited.
When reviewing the options for SMB’s, it seems most insurers are focused on coverage rather than convenience. It’s a natural instinct – coverage is what they do. But, do most customers really care if they have $150,000 of Valuable Papers coverage instead of $100,000? Coverage is not necessarily customer-centric.
Although there are a number of options now for SMB’s to buy insurance online, it’s not actually that much easier. There are still lengthy applications to complete, small underwriting “boxes” that delay quotes, complicated proposals to review, wait-times for policy documents and archaic payment options. The same cumbersome buying process has simply been moved to the digital world. Almost everything an SMB needs to operate can be purchased instantly. If a small contractor needs equipment for a job, the owner can simply drop by Home Depot on the way to the office. Likewise, if a consultant needs data to complete an analysis, a few minutes researching on Google will find numerous sources that sell data subscriptions. Time for lunch? Delivery can be arranged with practically every restaurant in the city.
So why can’t insurance be purchased the same way– instantly, as needed, and without any hassle?
On-demand insurance will do just that! In fact, the first product from Slice for SMB’s will be cyber insurance. It’s not just a policy, it’s a program. Even with insurance, claims cost money in terms of deductibles and lost time. The cyber product rolls together insurance and loss prevention to minimize “Total Cost of Risk.” The result: fewer claims, fewer deductibles, less time spent on insurance and lower premiums for SMB’s.
Key things to look for with “On-Demand” Insurance:
Here’s how easy it is to buy insurance through some very exciting innovations:
Here’s a secret: the application form can only benefit the insurer. It is not customer-friendly. Most of the information required on the form is either pointless or available from other sources. The purpose of the application is to get a signature to a warranty statement to use against the business at the time of a claim.
Rather than being forced into an annual insurance policy with an inconvenient renewal cycle, SMB’s can subscribe to their required coverage month-to-month. No more renewal questionnaires and no more premium finance contracts and the interest fees that go with them. Plus, at any time, the SMB can buy additional coverage on a temporary basis to address specific needs. Then, cancel at any time without penalty.
Insurance policies are short and written in plain English. Confusing insurance terms and legalese are eliminated. Policies are easy to read, easy to understand and easy to buy.
On-Demand insurance will not only make getting insurance easier for SMBs, it will have a huge impact on the industry as a whole.
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The system for construction risk management is broken. One in five workplace fatalities occur in construction, and the same mistakes repeat each year. In fact, misuse of fall protection was the number one most frequently cited OSHA violation. Change requires a radically different approach.
In the current system, an Underwriter or broker appoints a risk expert to inspect job site surveys at regular intervals during the life of the construction project. The primary purpose of these assessments is to examine performance, confirm compliance, and identify risk areas. Site surveys are typically completed by a professional Risk Engineer. However, this process is flawed in several ways:
The rise of InsurTech has established an alternative to the traditional survey and pray process. InsurTech solutions incorporate real-time connectivity between risk engineers, underwriters, and policyholders. Further blockchain technology and machine learning enable a secure environment that supports information sharing between jobs and between insurers driven by the underwriter.
In fact, one InsurTech iMitig8 Risk Tracker, developed a platform to manage an ecosystem of aggregate claims and recommendations. Alerts of potential risks are triggered and sent to key stakeholders across the risk chain and across different jobs. Further, iMitig8 enables lessons learned to be passed on between the stakeholders.
Construction risk management is due for a change. The industry now has an opportunity to adopt technology that can improve the safety of its employees and protect insurers from losses that can be prevented.
David Baxter, CEO
iMitig8 Risk, LLC
SVIA Startup Lab Member
