Technology can be a powerful competitive advantage for an insurer

It can also optimize the most important service a carrier provides, claim service.

It can facilitate an underwriter's assessment of a risk by easing access to rich historical data on losses and risk profiles. Technology can expedite communication and correspondence between the insurer and the insurance purchaser throughout the underwriting process. On the personal lines side, a consumer may require the insurer's help finding a shop that can repair his or her automobile quickly following an accident claim and funding payment of a rental car while the vehicle remains out of service. They may have a duty to defend their insured in certain litigation. Insurers are frequently involved in helping businesses minimize lost; Some insurers provide medical case management and rehabilitation services to help an employer return injured workers to productivity swiftly.

And, oftentimes, it requires far more than simply cutting a check in a timely fashion. That promise must be executed fairly and executed well. As stated earlier, an insurance policy is a contract promising to pay a covered loss if it occurs. This is especially true when a claim occurs. Such management information can provide an insurer with critical insights for evaluating the profitability of various product lines, distribution channels and market niches. Such support ranges from engineering services that result in recommendations to create a safer workplace, to training programs that help employers ensure sound labor practices that reduce exposure to employment practices claims.

Many insurers also provide pivotal support to help businesses manage risk and prevent or mitigate losses. Efficient operating processes and systems can drive down costs and provide a wealth of management information. Chasing market share in this way is a dangerous strategy, one that has led many insurers into financial trouble. Making the claims process smooth and ensuring that a loss causes the least possible disruption to an insured, financially or otherwise, is the central mission of any responsible insurer. Occasionally, the displacement of a player from the market tempts some insurers to enter a sector where rates are higher or lower than they should be, and they see potential for short-term gains. Companies also differentiate themselves in the manner in which they service customers. Online claim reporting alone can add substantial convenience for policyholders and promote a faster claim response from the insurer.