Look What Liberty Mutual
Well, it happened!
A major insurer in the United States, Liberty Mutual, just proactively emailed it’s policyholders and alerted them to the fact that they may have experienced claimable hail damage during a recent storm. The email advised policyholders on how to locate hail damage, file a claim and procure repair from their curated list of vendors. In an age of little insurance product differentiation, this was a genius move by Liberty Mutual.
Not only does this move give Liberty Mutual the first mover advantage of great marketing capital, it also allows them to control the claims narrative for their policyholders. In a time when nearly everyone in the United States has access to hyperlocal weather data, Liberty Mutual chose to get ahead of incoming claims by redefining the first notice of loss. The same data that allowed Liberty Mutual to make these proactive notifications to their policyholders also empowered them to cut loss adjustment expense and reduce cycle time by adequately staffing incoming claim call centers, efficiently dispatching adjusters, mitigating future damage and eliminating fraudulent claims. This data also equipped their underwriting team to continue writing new business in the affected area without taking on unwanted risk. It will also enable that same team to make smarter underwriting decisions moving forward.
We knew this day was coming at WeatherCheck. We know that most policyholders are becoming more aware of whether or not they have claimable storm damage, even storm damage from something as discreet as hail. With a world’s worth of information in each policyholder’s hand in the form of a smartphone, it was only a matter of time before hyperlocal weather data was sought by the masses. With recent high profile weather events like Hurricanes Harvey and Maria occurring, policyholders have become more sensitive to weather-related property damage, and are seeking and finding sources of weather information to confirm or refute their assumptions.
Insurance carriers have a few options when it comes to addressing this new movement. They can do what Liberty Mutual did and get in front of the storm, or they can sit back and watch the adopters of this philosophy grow and take over market share. It’s not clear how many hours and dollars were spent by Liberty Mutual to develop this technology, but it did have a cost. The idea of developing and managing a data platform robust enough to facilitate the functions necessary to excel in this market can be daunting. The good news is that WeatherCheck offers out of the box solutions that equip organizations to carry out the functions that Liberty Mutual is currently performing. These tools allow any insurance carrier to drive customer satisfaction, optimize claims and underwriting operations and ultimately drive the claims narrative, just like Liberty Mutual is doing.
The scenario of insurance carriers alerting their policyholders to potential claims is no longer a hypothetical one. It’s here, and all insurers must now ask themselves: will we follow suit?