Prepare for the Insurance Act 2015
The long-awaited Insurance Act is the single most important change to commercial insurance law since the Marine Insurance Act of 1906 – and they say insurance is a slow moving industry!
There are a significant number of changes which impact insurers, brokers and insured parties alike but I wanted to focus on one key change for now; duty of disclosure.
The inherent question being; if a material change is in the public domain, does this mean an insurer is deemed to ‘know about it’?
The complexity and ambiguity around what is presented to the insurer via the customer/broker and what an insurer simply should know, especially when the change may be material, will be a matter for serious debate.
The Act’s impact has left the market uncertain of how to respond in the short-term along with the risk (a term that makes the insurance world wince) of litigation cases and bad blood in the future.
So how can you prepare for the effects of the Insurance Act?
- Listen at scale
This is not an easy task as there are almost 100,000 tweets, 100 LinkedIn accounts and 1,500 new blog posts created every minute (numbers which keep growing!). Sitting in front of a search engine is not going to be nearly efficient enough to stay on top of existing customers let alone prospective ones.
Martin Buchanan, Account Director at Towergate Insurance uses Artesian, to track real-time changes to his customer’s situation in an online and social world. “I can demonstrate that I know their business, understand their market.”
- Recognising relevance
We’re all drowning in data, but if it is filtered carefully and ranked, you can discover insight about business changes that may impact your contracts including; organisational change (e.g. new geography); leadership change; market change; external change (e.g. legislation); relationship change (customers, partners); strategic; tactical (initiatives, reviews) and events.
Smart insurance professionals listen to these relevant insights to understand their customers better. David Ness is a Corporate Account Executive at Towergate Insurance who has been operating this way with great success.
“I recently picked up a piece of news about a huge uptick in annual turnover with one of our existing clients. Great news for them, but what they had not realised was that this could have negatively affected their policy.” David got in touch immediately to inform his customer of the risk they had unwittingly exposed themselves to by not informing their insurer about this change in circumstance and in doing so saved them from a potential claim.
“I could then ensure that they were adequately covered by their policy and prevented a possible claim situation.”
- Customer interaction in context
Listening is a habit that allows smart insurance professionals to understand, to bring customer context to every interaction, to nurture existing relationships and create new ones. By understanding how to put relevant insights into context and act accordingly, you can ensure that you are operating in the best interests of all parties at all times.
Need to prepare for the Insurance Act 2015? If you’re unsure of how the new legislation could affect you or are simply looking for ways to improve the way you do business, then get in touch. Artesian is helping insurers such as Aviva, RSA, Aspen and other industry leaders monitor customer changes and developments across news, social and corporate data channels allowing them to be proactive in engagement and ensuring there are no ‘grey areas’ in your contracts.