3 ways insurance companies spread disaster risk literacy to homeowners, requiring minimal lifts
House ownership has long been synonymous with the American Dream. No wonder: Owning property allows you to customize your place of residence, build stability, and perhaps most importantly, it provides you with the opportunity to build long-term wealth.
However, as long as you can protect your home under any circumstances, home ownership is just an act of wealth building. Otherwise, investing is a gamble.
Sustainable home ownership requires risk literacy rates – a deep understanding of disaster risks, the composition of changing threats to the property, and what measures can be taken to mitigate its impact. Risk literacy also involves understanding how insurance works, catastrophic risk coverage options, and the financial impact and protection restrictions of different policies.
Risk literacy is the knowledge base homeowners need to ensure truly appropriate property insurance. Without this knowledge, they are more likely to meet the minimum coverage required by their mortgage companies without understanding the alternative or expanded protections.
Additionally, with risk insights and literacy, policyholders are more likely to take appropriate household mitigation measures to strengthen their property against disasters (and potentially lower insurance rates).
This is for sustainable home ownership and therefore crucial to the property insurance system.
The best broker for risk literacy
Insurers are in good shape to initiate proactive homeowner risk education, and underwriters and risk managers can best access to disaster and hazard data.
Building your underwriting and risk management capabilities to collaborate more with a customer-facing role is an effective way to promote a risk literacy tradition for policyholders early in the home ownership period.
Here are three simple steps insurers that can begin promoting risk literacy without overhaul operations.
- Establish communication channels between underwriting/hazardous risk professionals and client-facing teams
The spread risk literacy rate starts with the insights you already have, namely from advanced disaster risk models that continuously produce updated information about different harms and their potential for loss. For example, the specific hazard and composite risk models available at COTALITY™ reveal the threat of flooding in rivers and lakes, or provide historical data on fires or damages hail in any designated area. These insights are relevant for policyholders as they consider the value of higher-priced but more comprehensive policies.
Underwriters and risk managers can share the deeper expertise they gather with customer-facing teams, simplifying insights so that salespeople can effectively communicate risk information to customers.
When sales teams better understand the growing risks, they will be able to sell policies and Education policyholders can affect potential disasters in their homes, and different ways of personalizing property insurance accordingly.
With tailored risk literacy, insurance sellers and agents are more capable of overcoming objections to higher costs (but necessary coverage).
To facilitate this information exchange and maintain this new communication standard, insurers can implement digital tools that enable cross-functional collaboration to be fast and convenient.
Cotality’s industry-leading loss control management system, CulelwritingCenter™, plays a key role in spreading risk literacy. This underwriting workflow automation system condenses property and risk insights into streamlined reporting, making these risk insights easier to provide absorbability to customer-facing teams.
This setting also has rewards. Data-driven collaboration can eventually scale to the network with mortgage lenders. In sharing insights with lenders, insurers can access earlier with future policyholders, which allows risk literacy to be provided before potential homebuyers make major property-related decisions.
- Lead marketing through value-added messaging
The easiest way to educate homeowners about insurance forward They realize they don’t have enough time to be driven by risk literacy.
Insurance marketing teams can transform risk literacy rates from underwriting or risk management to value-added messaging through different forms and channels: website content, thought leadership, email campaigns and social media posts.
Social media posts may provide a perfect forum to provide interesting information about risks that inspire people to think about their own risk literacy rates.
Targeted email campaigns can provide relevant insights to homeowners in high-risk areas. These possibilities are endless for risk literacy marketing, which invites fascinating conversations about the corresponding customized property insurance.
The risk literacy is introduced to earlier policyholders, and the less likely they are to experience sticker shock when making insurance decisions. If cost is not the only focus, clients can better evaluate what coverage best supports their long-term goals and ongoing home ownership.
This type of marketing content delivery will also develop customer trust. When coverage is far more than just cost, customers will be more satisfied and more likely to become policy holders.
- Automate the underwriting process so that risk literacy will not be reversed
Unless more administrative tasks are removed from the plate, it is difficult to ask risk professionals to communicate more with other departments. Therefore, technologies that automate underwriting and claim workflows increase bandwidth for these professionals to spread risk literacy.
Automation of the underwriting process that does not require human thoughtfulness gives professionals more time to curate risk insights on other business functions (see point one above).
Cotality’s Underwriting Center™ automates underwriting workflows through rule-based decisions to determine property risk attributes so that humans can focus on more complex risk analysis. Without more tedious projects, underwriters have more ability to communicate less obvious risk findings to clients’ face-to-face teams, which can translate these insights into clients’ literacy as risk.
Underwriting Center™ also returns time to the underwriter by enabling virtual inspections. By minimizing the time spent on a work site, it can provide brain power for more strategic, creative communication.
Expand insurance tasks to include risk literacy
With the right resources and strategic game plans, insurance companies can become reliable brokers for risk literacy. Risk knowledge is the necessity of building more resilient, insurable communities everywhere.
The precedent set by insurance companies can have broad and lasting benefits. Once insurance companies maximize the spread of risk literacy into insurance workflows, the mortgage and real estate industries quickly realize how important it is to introduce risk literacy in the earlier home purchase process.
Through risk literacy, insurance companies can take measurement steps to preserve their American home dreams.
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