As we step into 2024, Property and Casualty (P&C) insurance faces challenges that have evolved from macro-economic turbulence of the past year.
In an insightful discussion with Meryl Golden, CEO of leading P&C insurer, Kingstone Insurance, we delve into strategies for overcoming hurdles and achieving meaningful successes. From rejuvenating growth channels to embracing technological advancements in claims processing, Kingstone’s journey provides a lens into the broader trends shaping the P&C insurance landscape.
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2024 P&C Insurance Strategies
Kingstone acknowledges the impact of macro-economic factors, like the significant increase in reinsurance costs, on the P&C insurance sector in 2023 and identifies the need to reinvigorate growth in their producer channel for 2024. Having adjusted underwriting standards to better manage their reinsurance treaty renewal, the focus now is on regaining momentum and re-establishing a presence in quote flows. This signals a strategic shift to recalibrate and align with market demands.
“There was a wake-up call for many carriers in the last year as many tightened their underwriting and/or withdrew from the coastal markets entirely. This creates an opportunity for Kingstone.”Meryl Golden, CEO, Kingstone Companies, Inc.
The insurer’s commitment to product enhancement is evident in their initiative to develop and introduce Select. Launched in 2022, Select is a by-peril rated homeowner and dwelling fire product. Kingstone aims to leverage accumulated data to refine risk assessment, ensuring better rate-to-risk matching and increased segmentation. This underscores the importance of data-driven strategies in product evolution.
“We now have enough data to improve the product’s ability to match rate to risk and to increase its segmentation.”Meryl Golden, CEO, Kingstone Companies, Inc.
Embracing technology for claims processing is a key objective for Kingstone in 2024. The insurer recognizes the opportunity to enhance customer experience and reduce costs through technological advancements. This aligns with industry-wide trends, as P&C insurers increasingly leverage technology to streamline processes, improve efficiency, and meet evolving customer expectations. There is also a growing trend to encourage customers to reduce claims costs with preventive measures.
“Consumers need to understand that homeowners insurance does not cover maintenance on their homes and that those who maintain their homes will be rewarded with lower insurance rates over time. Carriers should encourage and consumers need to adopt loss mitigation practices, like water shut-off devices, to control loss cost better.”Meryl Golden, CEO, Kingstone Companies, Inc.
The insurer successfully transitioned from multiple legacy systems to the unified WaterStreet Platform. This not only reflects Kingstone’s commitment to operational efficiency but also demonstrates the transformative impact of consolidating systems in the ever-evolving landscape of insurance technology.
“This was a significant initiative for the company, which took a lot of resources, and we accomplished this within 2 years, an amazing feat. This effort has dramatically increased efficiency for our staff and saved the company a lot of money.”Meryl Golden, CEO, Kingstone Companies, Inc.
Addressing the challenges posed by an inflationary environment, Kingstone’s ITV Initiative focused on regular updates of replacement costs. Collaborating with a new vendor, e2Value, the insurer re-evaluated the replacement cost of all personal lines properties. This initiative, emphasizing policyholder benefits over a generic inflation guard approach, resulted in a substantial increase in coverage and premiums.
“While some companies increased inflation guard to address inflation, we thought this re-evaluation was better for our policyholders because all customers were insured to value.”Meryl Golden, CEO, Kingstone Companies, Inc.
Kingstone acknowledges the complexity of challenges facing the property insurance industry, including macro-economic factors and the impact of climate change.
The insurer emphasizes the need for governmental attention to climate change and proposes specific changes for the insurance sector, such as quicker regulatory responses and encouraging consumer awareness and participation in loss mitigation practices.
Kingstone’s perspective aligns with a call for reduced regulation in the insurance industry. Advocating for a focus on solvency over intricate state-level regulations, the insurer believes that less regulatory burden would foster a more competitive and healthy marketplace.
Insights from Kingstone offer a valuable perspective on the challenges and trends shaping the P&C insurance landscape in 2024. From strategic responses to macro-economic challenges to transformative initiatives that drive meaningful success, the insurer’s journey provides a glimpse into the evolving dynamics of the industry.
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