The insurance industry has always been defined by its ability to adapt and innovate in the face of new and emerging risks. As we enter an era of unprecedented change, mutual insurance companies have a tough task at hand: a need to stay vigilant, prognosticate, perpetually flexible and oh yeah, neoteric to remain ahead of the curve. No easy feat. WaterStreet, a leading property and casualty (P&C) administration provider and platform, is committed to helping mutual insurance companies navigate this rapidly evolving landscape by providing them every tool they may ever need.
In this blog post, we will explore strategies for identifying and monitoring new and emerging risks, as well as developing products or services to address them. By implementing these tactics, mutual insurance companies can maintain their competitive edge and continue to provide the best possible service to their policyholders. No matter what the constantly transforming market necessitates.
Identifying Emerging Risks
The first step in staying ahead of emerging risks is to identify them. A journey of a thousand miles begins with a single step, right? In insurance, that step is recognition. In essence, this means collecting as much actionable data as possible, and utilizing the highest level of expertise possible to use it in your favor. Staying informed about new developments in technology, regulation, and social trends. The more knowledge and information, the better. Here are some ways mutual insurance companies can accomplish that goal, to remain as up-to-date and leading edge as possible:
- Monitor industry news and reports: Regularly review relevant news articles, research studies, and reports to not only maintain expertise on the marketplace, but to identify potential risks that could impact the insurance industry as well. Thought leaders see things before others, and that information is an advantage.
- Attend industry conferences and events: Conferences and events can provide valuable insights into emerging risks and offer opportunities to network with experts and peers.
- Leverage internal resources: Encourage employees to share their observations and insights on potential risks. This can help foster a culture of innovation, free flowing ideas and risk awareness. There’s a reason you hired your employees, let them dazzle you with what they know and your company thrives – in risk identification and beyond.
- Engage with stakeholders: Maintain open lines of communication with policyholders, regulators, and other industry stakeholders to gain insights into potential risks and challenges. Everyone in your industry sphere has valuable information if you know how to apply it. Keep your ears open and ready to engage, and good things will happen.
Monitoring Emerging Risks
Once emerging risks have been identified, it’s essential to monitor their evolution and potential impact on the industry. No two risks are made the same. So the impacts they have are all different with regard to reach, scope and severity. Overseeing and tracking them accurately (possibly the most crucial element of this subset) can be achieved through the following methods:
- Develop risk models: Use data analytics and predictive modeling to assess potential impacts of emerging risks, both on your business and the industry as a whole. It’s critical to get the whole picture. Think of it like seeing the forest and the trees.
- Regularly update risk assessments: Continually reassess your company’s risk landscape to account for new and evolving threats. Not only will this keep assessments up to date in the most actionable ways possible, but it informs your understanding of the landscape and what products or services are needed to address risks within it.
- Establish a risk monitoring team: Dedicate a team to monitor emerging risks and report their findings to company leadership. The more they know should translate to the more you know. Ideally, as quickly as possible.
- Collaborate with industry peers: Share insights and collaborate with other mutual insurance companies to develop a comprehensive understanding of emerging risks. Again, the more expertise you can elicit and utilize, the better it is for your firm. Industry engagement makes that all possible.
Developing Products and Services to Address Emerging Risks
After gaining a clear understanding of emerging risks and their potential impacts, mutual insurance companies now have the equipment to begin developing products and services to address these challenges that face them. First, well done! You have your scaffolding through planning and strategic design. Now it’s time to construct your building. This process involves:
- Analyzing market needs: Based on your recognition, predictions and assessments, identify gaps in existing insurance products and services around specific potential risks, and determine the specific needs of your policyholders in relation to them. Think of it as the strategic ideation.
- Assessing the feasibility of new offerings: Evaluate the financial and operational feasibility of developing these new insurance products or services to address these specific emerging risks. You have an idea. Now, does it make sense? If you’re sharp, you’ll recognize this as mitigating your own risks.
- Collaborating with Insurtech partners: Partner with Insurtech companies to leverage their expertise and technology to develop these (or other) innovative solutions. With collaboration comes flexibility. It may be your exact product solution, or a better idea may be presented as a risk solution. Either way, you’re moving closer to your goal with the collaboration of a partner who can accomplish your goal.
- Piloting new products and services: Test new offerings in a controlled environment to gather feedback and refine your approach, before finally launching them to the market. These steps are linked and crucial. Deal yourself the best hand with testing, then go into the marketplace confident in your product.
Harnessing the Power of WaterStreet’s Platform
WaterStreet’s comprehensive suite of tools and services is designed specifically to assist mutual insurance companies in staying ahead of emerging risks, from any and all angles. From identifying and monitoring risks to developing and implementing innovative insurance products, our platform is equipped to support your organization through every stage of the process. Some of the key features that set WaterStreet apart include:
- Advanced data analytics and risk modeling capabilities: Our platform provides sophisticated data analysis tools that enable insurance companies to better understand and manage emerging risks. From multiple data sources, all at your fingertips on one all-encompassing platform.
- Seamless integration with Insurtech partners: WaterStreet’s platform is designed to easily and quickly integrate, making it simpler to incorporate cutting-edge technology into your risk management strategy.
- Customizable offerings: WaterStreet understands that each insurance company has unique needs, and our platform is designed to be flexible and customizable to meet all of them. We provide fully tailored solutions for your specific requirements.
- Industry expertise and support: WaterStreet’s team of experienced professionals and configuration engineers are dedicated to helping insurance companies navigate the complexities of emerging risks, offering guidance and support throughout the process, and enhancing your ability to stay ahead of risks in whatever form they present themselves, then develop the products and services you need to succeed.
In the face of constant change, mutual insurance companies must remain proactive in their approach to identifying, monitoring, and addressing emerging risks. By implementing the strategies we’ve outlined here, and leveraging the power of WaterStreet’s P&C policy administration platform, your organization can stay ahead of the curve and continue to provide exceptional service to your policyholders. In ways that position your company as an industry leader with that all important reputation: “The company that’s prepared for anything.” Now that’s something worth putting on a business card.
To learn more about how WaterStreet can help your insurance company navigate the challenges of emerging risks, please contact us today. Or visit us at www.waterstreetcompany.com.