3 steps for insurers to prepare for catastrophic events
Before July 2023 ended, scientists were already calling it the hottest month ever recorded. Temperature records were shattered worldwide, and a warming climate means more wildfires, floods and extreme weather events that will affect a greater number of people, including your policyholders. Even in years where insured losses aren’t spiraling up, more people are threatened by catastrophic events.
This means you’ll need to be ready to step up and communicate with more policyholders before, during and after catastrophic events, whether you’re a carrier, agency or third-party administrator. Proactive communication from insurers is a great way to build trust with your policyholders during uncertain times, and let’s face it — people expect to be kept informed in real time.
The convergence of more frequent weather events that affect more people plus higher customer expectations make now a great time to get ready to communicate with the masses. Here are three steps you can take to prepare.
1. Make sure your policyholder database is truly up to date. Even if you capture all relevant contact information up front, including work and home landline and mobile numbers, physical addresses and email addresses, and permission to contact policyholders, this information can change, and unless you’ve had a recent claim, your data may be out of date. In the U.S. in 2021, only 5.3% of insured homes experienced a claim and beyond this people don’t update their contact information as often as they should.
Don’t wait for them to reach out to you — an event notification is a good opportunity to ensure your information is up to date. Make sure you have the right contact information and also have permission to use it. Waiting until the claims process starts is too late, so make sure your opt-in and opt-out data is current. Also recognize that people opt-in and opt-out of communication at will, so it’s critical to coordinate with vendors to actively manage consent for contact. Your policyholders will thank you later!
2. Have the right data and tools to geotarget groups for relevant messaging. Ensure you’re working with partners who provide multiple data streams so you can reach the right people if a catastrophic event is on the horizon. Don’t rely solely on satellite data; look at water table data, heat mapping, civic data, etc., and bring in as many sources as needed to guarantee accurate outreach.
Unusual weather events like the polar vortex in Texas a couple of years ago may happen more frequently as the climate changes and insurers need to be ready. Whether the risk is a freeze, wildfire, hurricane, tornado or another type of event, the more data you have, the better you’ll be able to pinpoint risk and communicate proactively with the relevant policyholders.
3. Prepare yourself for the journey. The possibility of more frequent catastrophic events is daunting, but preparation is key. Now is a good time to reimagine the policyholder journey and make sure you have the communication assets you need to keep people informed at every stage, with emphasis on keeping in touch from initial alerts through a potential total loss and claims processing.
As an insurer, you need to protect yourself too, and accessing a variety of data sources can help you do so by ensuring you have precise information on where losses are likely to have occurred so you can protect yourself from fraud. Taking the time to review the policyholder journey now will provide confidence that you’re ready to reach out as catastrophic events happen.
No one knows what the future holds, but recent patterns have insurers on the alert for more weather-related events all year long. That’s challenging for the industry and the customers it serves. As an insurer, your job is to be there when policyholders need you — before, during and after a catastrophic event — and they’re counting on you to keep them informed along the way.
That’s why this is the ideal time to make sure your policyholder database is up to date, you have access to all the geotargeting data you need, and that you review all the steps on the policyholder journey to prepare yourself and your team for what’s ahead. By focusing on these initiatives, you’ll be ready to step up as weather events affect more policyholders.
