The business environment is looking bright for program business, as noted in The TMPAA State of Program Business Study 2019. The annual survey results reported program business outpacing the overall commercial insurance marketplace, showing growth in 2018 after a slowdown in previous surveys.
When news is good, it’s easy to become complacent and unprepared for looming changes. Here are four things to watch and plan for as you forecast your business needs for 2020.
- Growing Pains: When an industry is poised for rapid growth, businesses may find it hard to keep up with necessary hiring and training needed. Simplifying process and business systems, careful documentation of standards, and investments in technology to streamline work will help businesses thrive in a growth environment.
- Mergers and Acquisitions: Growth in an industry often encourages medium to large program administrators to look to increase their breadth of programs or book of business by purchasing smaller program administrators. It’s wise to strengthen your carrier relationships, your programs and your use of automation to ensure you’re one of the survivors.
- Keeping Up with Emerging Business Models: The “sharing” and “gig” economies are now part of everyday life. Ride sharing, home sharing, equipment sharing and side business income are changing the way people move and work. New business models like these create opportunities to assess risk, and insure.
- Tech, Data and AI: Businesses that are not using technology will be left behind – and this is especially true with insurance, where data is at the core of assessing risk. Artificial intelligence may be applied to data collection to aid poor risk assessment and underwriting.
- Cybersecurity: Insurers collect vast amounts of data, which could be targeted for cyber attack. Companies need to make sure all vendors are secure. NetRate has invested heavily in this area, complying with New York Department of Financial Services (NYDFS) standards to ensure we protect confidentiality, integrity and availability of our clients’ data, and NetRate’s information systems.
NetRate values its role as a technology partner for program businesses, streamlining the rating, underwriting, quoting, submitting, binding and issuing of policies. Please give us a call at (877) 790-1114 or contact us here to find out how NetRate can provide you with the solutions — and customization — you need.