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Wealth Management

DIGITAL NATIVES CAN BE THE DRIVING FORCE BEHIND THE BIGGEST TRANSFORMATION IN INSURANCE

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Sam Vickerman, Practice Director, Insurance & Retail, Grayce

 

Often referred to as digital laggards in the finance sector, insurance companies are renowned for being slow to adopt new technologies. Held back by legacy systems and old-fashioned business models, the industry also lacks the technology talent required to speed up innovation. According to Deloitte, just 4% of millennials want to work in insurance, with many more being drawn to exciting roles in technology, consulting or other financial companies instead. Insurtech start-ups are beginning to emerge, who are focused on developing software for the sector. Yet the gap between these fledgling firms and traditional insurance companies is growing. Exacerbating the problem further is the impact of Covid-19 on the sector, with customer demand for more digital products and services growing. If insurance companies are to prosper in the post-pandemic world, they need to find ways to adopt digital technologies at a faster rate. And that must start with changing the next cohort of workers’ perception that the industry is dull and dusty and finding ways to attract and retain this talent.

 

Attracting digital native talent

Immersed in technology since birth, millennial and Gen Z workers are confident in and capable at using digital tools – it’s argued that the brains of digital natives are actually wired differently to ‘digital immigrants’ (those who have adapted to the new world as adults), due to vastly different kinds of early learning experiences. In the workplace, this translates to differing communication and information-gathering styles, and according to Forrester, these workers prefer greater mobility, tech autonomy and software diversity compared to their older counterparts. Insurance firms must find ways to tap into this talent pool more widely if they’re to digitalise their operations and compete with the emerging start-ups in the sector, and they should start by employing individuals that show a curiosity and willingness to continuously learn. These individuals can act as digital champions for their organisations, helping them to embed the latest technologies into their operations and shape the future of their business.

Sam Vickerman

Here are a handful of those technologies that could drive widespread transformation of the sector.

  • Highly personalised services through IoT and social media – traditional risk assessment relies on datasets that consider a range of factors such as the customer’s age, gender, location, marital status and so on. But today, endpoint devices and social media can provide much more personal insights into the individual – in a model that is beneficial to both the insurer and the customer. Wearables, for instance, provide deep insights into a person’s physical health, measuring factors such as blood pressure, temperate and number of steps per day. The business gets a more accurate risk assessment, and the customer gets a more tailored policy that suits their needs. This model is growing in popularity, with a recent study by Accenture finding that more than three-quarters of consumers are willing to share their personal data in exchange for more personalised insurance offers and cheaper coverage.
  • Digitising paper records – the insurance sector is a heavy user of paper-based records, with firms typically keeping thousands of files in paper archives, gathering dust. If files are digitised, analysed and stored in the cloud, documents can be automatically reviewed, helping to reduce inconsistent information or errors.
  • Internal workflow automation with RPA and Machine Learning – automation enables firms to reduce the time spent on routine paperwork and administrative tasks, freeing up employees to focus on more creative, value-add work with their clients. Robotic Process Automation (RPA) can help address repetitive work, including preliminary assessment of each claim, data entry and payments. In turn, this results in more efficient decision making, reduced call times to customer service teams and far greater accuracy of data entry.
  • Automated resolutions through AI-powered chatbots – customer service agents spend thousands of hours on the phone, often supporting clients with simple requests. Chatbots can help automate many of these conversations, using AI to filter through the chats and route priority customers that require urgent attention through to human service agents. This can drastically cut costs in customer support and sales.
  • Blockchain implementation – according to PWC, blockchain implementation could cut costs by $5-10bn for reinsurers worldwide. Key benefits include reducing verification and validation time, eliminating errors and minimising reputational risks. Blockchain enables all required parties to be connected by smart contracts, meaning reinsurers don’t have to interact with the insurer to get access to the client’s data.

 

Dusty to digital-first

The insurance sector is in much need of a revamp and companies risk falling behind if they do not start investing in digital innovation today. However, by giving ambitious digital natives licence to research and embed new technologies, they can transform their operations and compete with new market entrants. Technology is driving several disruptive trends in insurance, such as personalisation, automation and real-time based assessments. If insurers can get digital adoption right, they will benefit from cost reduction, better communication with their customers on the channels of their choosing and more accurate risk assessment. The next generation of workers can help drive this change – shifting the perception of insurers from dusty to digital-first. It’s time for insurance companies to start investing in these individuals now.

 

Top 10

STOCK TRACKER TO OPTIMIZE YOUR SHORT-TERM GAINS

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When it comes to trading for short-term gains, there are many options to explore. For example, you could dive into technical analysis and trade based on data. Next to that, you could thrive on the sentiment of the market to get your gains. In any case, it is important to have the latest state of the market captured, including your holdings in that market. Having the best stock tracker could help you realize that. In this article, we will explore how a tracker can support short-term traders to increase their gains.

 

Connect with brokers for a holistic perspective

If you are an active trader, you probably hold stock at multiple broker accounts. For example, one broker could be leveraged for the US market while another broker has more favorable conditions to trade in Europe. With the best stock tracker on the market, you can integrate with these brokers through API and have an overview of all your holdings in real-time.

 

How does an API work

Since it concerns your stock holdings, you could receive this data sharing with some healthy skepticism. Do note that APIs are perfectly safe and only transfer data that is approved by the parameters defined by the broker. For example, you need to provide a special key to retrieve the data and can only retrieve information that is allowed to be retrievable. Often, this is limited to the holdings and quantity of the holdings.

 

Information on your trades

With API connections to brokers, and also a possibility to integrate with crypto brokers, you can also have an overview of transactions inside your stock tracker. This allows you to analyze your trades and up your game. For example, the tracker can indicate if the trade worked out well for you, or if it was better to hold on to the stock. You can analyze this information and continuously improve.

 

A proactive investment tracker

The power of an investment tracker can be found in the proactiveness of your portfolio. In the past, retail investors would combine their holdings into a spreadsheet and update those regularly. This has already started shifting with special macros that allow you to get real-time stock information from stock exchanges across the world, providing an element of automation. With a stock tracker, this is brought to the next level on two different dimensions.

Real-time data and push notifications

Naturally, the data of stock prices get updated automatically. Where it does become interesting is the notification setting possibility. For example, you could set a push notification when stocks gain or dip by a certain %. This allows you to be on top of your game, without the need to continue watching the market. In short: more freedom for you while your stock tracker is analyzing the market.

 

Relevant news

Especially when trading for short-term gains, market sentiment is essential. What will be the decision of the FED? How is a certain industry performing? Did you hear about that latest scandal? The best stock tracker also includes the latest stock market news, which can be provided through push notifications as well. For example, you can configure it to receive news that relates to your holdings for optimal coverage.

 

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Wealth Management

VOID OR VALID : 10 WAYS YOU COULD BE INVALIDATING YOUR CAR INSURANCE

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  • Being the named driver on your child’s car could invalidate your car insurance 
  • Driving with pets can have an impact on your insurance cover 
  • co.uk reveal ten ways to legally reduce your insurance

 

Car insurance prices have reached a seven year low1, with Covid helping to drive down the price, but it’s important to remember to be as accurate as possible when providing your personal details.

Providing false information or failing to update with changes of circumstance, whether accidentally or not, can invalidate your insurance, meaning your insurer is able to refuse to pay out for claims, or even cancel your policy. Some types of misinformation may even be classed as fraud and could see you end up in court.

That’s why CarParts4Less has shared ten easy to make mistakes that might be invalidating your car insurance.

  1. Lying about your main address

Car insurance premiums can vary depending on the postcode, as some areas have higher rates of thefts and break ins. It can be tempting to put down your home address as somewhere different to where your car stays every night  – a parents’ house while you are at university, for example, or at your house when you spend five nights a week living at your partner’s. However, doing so can mean your insurer can refuse to pay out any claims made, for example if your car is broken into in the location it actually resides.

Insurance companies have investigative departments (called special investigations unit, or SUI) dedicated to making sure information on your insurance and claims are correct, so while you may think you can get away with not updating your address, the likelihood is is that this will be found out when you make a claim.

  1. ‘Fronting’

Insurance for young drivers often costs more than groups deemed less of a risk, and one way some motorists try and get round these higher premiums is by having a low risk driver, such as a parent or partner, named as the main policy holder, and adding the real motorist as a named driver. If you get caught ‘fronting’, your policy will immediately be cancelled, and any claims denied. These cases are often taken to court, too, as it is classed as insurance fraud, with outcomes including fines of up to £5,000 and six points on your license.

  1. Ignoring your morning commute

There are three types of car usage that insurance covers; social only, social and commuting, and business. Social only insurance covers driving for social or leisure use; driving to and from friends’ houses, going to the supermarket, etc. The commute to and from work, or even to and from the train station, are not covered by this policy, so upgrading to a social and commuting is necessary, even if you only commute a few times a month. Insurance companies may dispute or refuse claims made during a commute if the policy is social use only, even if it is claimed to be only a one off.

If you use your car for work purposes outside of commuting, for example using it to get to meetings, or carrying equipment, you will need to get business cover.

  1. Not informing your insurer about any car modifications

Car modifications can affect your insurance premium for two reasons; if they increase the likelihood of an accident, or if they increase the likelihood of theft. Optional add ons for brand new cars, including something as simple and common as fitting in a SatNav, can impact insurance so it’s important to ensure these options are noted when applying for insurance. Your insurer will also need to be made aware of modifications that are made during your policy, as this may require a change in policy.

  1. Not informing your insurance company of minor accidents

In the case of small bumps or minor accidents where only cosmetic damage occurs, it’s common for motorists to have their car fixed without making a claim. However, even if you intend not to claim, it is important to inform your insurance of any damage received, as to not do so is a breach of your policy. This helps in the event that the other driver changes their mind and decides to claim, and also ensures damage is accounted for if you do need to claim after future incidents – damage which is inconsistent with a claim may mean that your claim is denied.

  1. Using more miles than you thought

Your annual mileage is one of the main factors used to calculate your insurance premium; the higher the mileage, the higher the cost. It’s important to be as accurate as possible when providing this figure, rather than just guessing, as it’s possible your insurance provider will decide not to pay a claim if your mileage is higher than what you’ve estimated. When working out how many miles you drive, don’t forget to include weekends away, weekly shopping, etc, and add some contingency miles – it’s better to be safe than sorry!

  1. Driving with pets

If you are driving with your pet in the car,  you are legally required to make sure they are secured. Unsecured pets can make a car more at risk of accidents, as they may distract the driver or even physically get in the way of driving. If you crash with an unsecured pet in the car, it’s likely that your insurance company will refuse to pay for your claim.

  1. Letting other people drive your car

While it’s possible for your friends or family to have insurance policies that allow them to drive other people’s cars, it is unlikely these policies cover damage to the vehicle in the event they are in an accident. It’s more than likely  that your own policy only covers vehicle damage that happens when a named driver is in the car, so while your friend can legally drive it, any accidents that occur may not be able to be claimed for.

  1. You’ve recently changed jobs

Your current occupation is one of the factors used to determine your risk profile, so it’s important to update your insurance company if you have changed jobs or occupations. Failure to do so many mean any claims made after a job change can be denied by your insurer.

  1. Charging for lifts

Some policies specifically exclude cover for car sharing, whether you make profit or not. For those whose policies do allow lift sharing, it may be void if you make a profit from giving lifts – many state you may only make enough to cover petrol and driving costs. Earning money from giving lifts can identify you as a ‘taxi hire service’, making a policy which does not cover this void.

It’s important to always read the terms and conditions of your car insurance policy, to ensure that you have not accidentally invalidated the policy. Keep your insurance provider up to date with any change of circumstances, regardless of whether or not you think it’s relevant, as some seemingly unrelated life changes can impact your premium.

 

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