Proactive Communication Is the Best Insurance

In Australia over the past year, storm damage has caused billions of dollars in damages, forcing insurance companies to make massive payouts. The ‘Storm of the Century’ that hit Sydney in April 2015 was alone responsible for more than 41,000 claims and over A$295 million in insurance losses (as of end April).

Hailstones, flash floods and high-speed winds created even worse conditions for areas north of Sydney, particularly the Hunter Valley, NSW.

Weather across the globe is becoming more extreme and unpredictable, and insurance companies are exploring new ways to reduce their business exposure.

What’s an Insurer to Do?
One way is to reduce the number of claims in the first place. Insurers can’t control the weather, but if they have some warning of what is to come, they can warn their policyholders to take preventative action. For example, if they know a hailstorm is likely, an insurance company could warn automotive customers to move vehicles undercover to avoid damage.

But to do that, insurers need to communicate proactively and efficiently with their policyholders. The technology exists – virtually everybody has a mobile phone nowadays – but the systems need to be in place to get the right information to the right person at the right time. And multimodal communications – landline, email, text message, etc. – can ensure maximum reach.

Forewarned, as they say, is forearmed. If insurers can help businesses and individuals protect themselves against weather events, everybody benefits.

Once proactive communication systems are in place, they can be used for other purposes, such as helping customers to file claims, allowing insurance assessors the file from the field, and communicating with employees.

The Internet of Everything Has Arrived
With more employees, customers, and partners connecting to more systems via more devices, communications have never been more complex. Proactive communication is a powerful tool for reducing the consequences of unplanned incidents, such as extreme weather events.

That is exactly what the xMatters On-Demand communications platform does. It helps apply order to chaos. It enables customers, staff and business partners to react to multimodal messages on any device and in an appropriate format. In emergency situations, just getting the right people on a conference bridge can be challenging. Multimodal communications can reach everybody in minutes.

Such systems can also increase customer loyalty. Being proactive with customers and warning of potential dangers can strengthen relationships. Alerts on routine vehicle maintenance, for example, can reduce the likelihood of damage through negligence. Payment reminders can help keep customers on schedule, happy and loyal.

Creating a Better Experience
Proactive communications also enable upsell opportunities by offering other types of insurance or expanded premium coverage in the event of major life events like marriages, new children or home purchases.

Read the Proactive Communications white paper

Most people don’t like paying for insurance, and they dislike using it even more! They usually would rather the damage had never occurred than have to make a claim. And insurance companies certainly don’t like paying out! But proactive communications in the insurance industry can help all parties to have a better insurance experience.

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