As natural disasters become more frequent and severe, the insurance industry faces an urgent need to enhance its resilience. The good news is that cutting-edge insurance technology, or insurtech, can play a critical role in both predicting and responding to natural disasters. In this blog post, we will explore how insurance executives can leverage insurtech to better manage risks and maintain human connections that define the industry.

According to Robert Pick, EVP and CIO at Tokio Marine North America, insurtech solutions can help identify point risks, such as wildfires, which continue to pose a significant threat across California. “Technologies that can pinpoint the location of every fire hydrant in a specific area were virtually non-existent just five or six years ago, but now there is a plethora of options available,” he said.

One of the most promising insurtech solutions is artificial intelligence (AI), which can transform risk assessment by analyzing real-time data and returning it with a level of analysis that helps insurers uncover insights previously hidden between the cracks. AI algorithms can also analyze historical data and develop models that highlight potential risks, enabling insurers to evaluate risk from a fresh perspective and underwrite policies they may have previously avoided.

However, while AI and data analytics are revolutionizing the nat cat space, Pick stressed the importance of maintaining the human connection in insurance. “Agents play a critical role. They understand risks and policyholders better than any carrier can because they’re right there, having those direct client conversations. Ripping that away for anybody’s AI is fraught with danger,” warned Pick.

So, how can insurance executives strike a balance between AI and human connection? Here are some tips for brokers:

1. Leverage AI for personalized insights: Utilize AI to gather and analyze relevant data about your clients' risks and preferences. This allows you to enter client meetings armed with tailored insights, making conversations more meaningful and demonstrating your commitment to understanding their unique needs.

2. Automate routine tasks to focus on relationships: Delegate repetitive tasks such as data entry and basic research to AI. By automating these time-consuming activities, you free up valuable time to engage more deeply with clients, allowing you to strengthen relationships and provide higher-value advisory services.

3. Foster open communication and trust: While AI can enhance decision-making, prioritize building trust through open, honest communication. Make sure clients feel heard and understood and reassure them that your human expertise complements the data-driven insights provided by AI, reinforcing the personal connection in your client relationships.

In conclusion, insurtech can elevate nat cat preparedness by providing insurance executives with cutting-edge tools to manage risks and maintain human connections. At Riskwolf, we enable insurers to build and operate parametric insurance at scale using unique real-time data and dynamic risk modeling. Contact us today to learn more about how we can help you turn real-time data into insurance.

Source: Insurance Business