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Business Featured General Insurance

According to the U.S. Census Bureau, the population of those aged 65 and older is projected to almost double within the next 30 years; reaching a staggering 88 million by 2050.

This rapid aging of workforces has particularly affected industries such as insurance, making it necessary for companies in this sector to implement appropriate strategies and measures that ensure their longevity.

With a looming talent crisis on the horizon, the insurance industry is facing an alarming trend in its demographics. The U.S. Bureau of Labor Statistics estimates that nearly 400,000 employees from this sector will soon retire – leaving a void where expertise and experience are desperately needed.

A pressing issue is the lack of people desiring to pursue a career in insurance:

  • According to a survey conducted by The Institutes, 80% of millennials state that they have limited knowledge and awareness about job prospects in the insurance sector.
  • Despite the fact that insurance offers a myriad of exciting opportunities in areas such as marketing, finance, data analysis, and information technology to millennials – 44 percent still do not find it interesting according to Valen Analytics. This is perplexing when one considers how attractive these career avenues are for this generation.

Additionally, many millennials are delaying homeownership and car purchasing decisions, which in turn contributes to their lack of experience with insurance products. Furthermore, the industry is transforming at a rapid pace due to the inclusion of advanced technology and social media integration – something that may not be on the radar for those who have limited exposure to these matters.

Gaining insight into Millennials and the generation to come

So, how do we reverse the current trend and reach this new generation? It starts by understanding them. For example, individuals born between 1981 to 1996 are known for their affinity towards communications media, and technology. Thus, when attempting to engage with a tech-savvy fast-moving cohort such as Millennials, it is essential that insurers carefully consider adapting strategies to effectively connect with them.

Technology

The millennial generation saw the Internet boom, with post-millennials currently growing up in a world of continuous connectivity. This age group has never lived without Wi-Fi and is used to being constantly connected. To draw younger people into the insurance industry, it’s important to place an emphasis on technology developments and innovations.

Insurance carriers are now leveraging mobile apps to provide customers with various services such as filing claims, scheduling inspections, tracking the progress of their claim status, interacting directly with agents using direct messaging functions, and even submitting videos for appraisals. Insurance agents can make use of these apps too in order to give clients a more enhanced experience.

To engage the younger generation, taking advantage of digital tools like social media is a wise move. And that’s our next point to discuss…

Social media

Social media offers small businesses and insurance agents an incredible platform to establish their credibility in the industry, while also facilitating a proactive approach toward engaging prospective talent. Research from Vertafore shows that millennials are over two times more likely to be approached through social media than any other age group. With this in mind, it’s no surprise that job fairs – once a key way of sourcing new talent from college graduates – have become obsolete compared to digital recruiting methods.

Taking advantage of the digital space is a must for any business looking to engage and recruit top millennial talent. After all, most millennials are known to interact with organizations through social media, so why not use this platform as an opportunity?

Technology and social media are playing an increasingly important role in the insurance industry, not only revolutionizing how business is conducted but also aiding recruiters in their attempts to attract a new generation of workers.

January 24, 2023
Business Featured General Insurance Press Release

SALT LAKE CITY – LenderDock Inc., the leading provider of online Property and Casualty Insurance policy verification and automated lienholder process management services, announced a new partnership with Vermont Mutual Insurance Group.

“Vermont Mutual is extremely excited to employ Lenderdock’s base platform.  It will allow our folks to spend more time providing superior customer service to our partners,” said Jonathan Becker, VP of Underwriting for Vermont Mutual Insurance. 

Through the partnership, LenderDock’s Base Platform will help Vermont Mutual’s service and support teams eliminate time-consuming lender communications. LenderDock Base includes the Verifi™ and Correxion™ services.

“We are honored to support Vermont Mutual in its efforts to streamline its internal business processes and create efficiencies through technology. They are a great example of an insurance provider that has maintained their focus on delivering the best experience for their customers as possible,” said Frank Eubank, LenderDock’s CEO.

About Vermont Mutual Insurance Group

Chartered in 1828, the Vermont Mutual Insurance Group is one of the ten oldest mutual property/casualty insurers in the United States. The company provides coverage to over 300,000 policyholders through 800 independent agency locations in seven states – Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.

Vermont Mutual has also been rated “A+ Superior” by AM Best and named a Ward’s Top 50 performing property-casualty and insurance carrier for 14 consecutive years.

About LenderDock Inc.

Headquartered in Salt Lake City, Utah, LenderDock Inc. is the leading provider of online Property and Casualty Insurance policy verification and automated lien holder process management services. The policy verification-as-a-service (VaaS) platform offers banks, lenders, and financial third parties the ability to digitally verify and correct home and auto policy-related data in real-time.

January 18, 2023
Business Featured General Insurance Press Release

SALT LAKE CITY – LenderDock and West Point Insurance Services announced a new partnership that strategically supports the goal of having a comprehensive lienholder process automation solution by fully digitizing lienholder verifications and mortgagee correction requests.

West Point Insurance Services delivers a comprehensive suite of services within their InsurSys suite of products including a customized policy process and management software platform and a complete Business Process Outsourcing solution. Their team of Property and Casualty insurance industry veterans combines expertise in technology and decades of P&C industry knowledge to help carriers and insurance providers scale, rapidly launch new programs, and consistently ensure quality and compliance.

As the company continues to grow, finding a solution that reduces operational cost related to mortgagee communication and lienholder workflows is a top priority. With a commitment to their clients and partners, having an all-digital solution that addresses the multitude of manual tasks and requests from banks and lenders is critically important.

In addition to utilizing LenderDock’s Notifi™ service which facilitates the electronic delivery of loss payee and escrow billing notifications, West Point will look to add LenderDock’s Verifi™ and Correxion™ base platform.

“West Point is an innovator and market leader within the P&C insurance industry, and we couldn’t be more excited to assist them in maximizing the value of the technology and service they deliver to their clients,” said Frank Eubank, LenderDock’s CEO.

About LenderDock Inc.

Headquartered in Salt Lake City, Utah, LenderDock Inc. is the leading provider of online Property and Casualty Insurance policy verification and automated lien holder process management services. The policy verification-as-a-service (VaaS) platform offers banks, lenders, and financial third parties the ability to digitally verify and correct home and auto policy-related data in real-time.

January 13, 2023
Business Featured General Insurance Press Release

SALT LAKE CITY – LenderDock Inc., a SaaS company offering the only fully digital Property and Casualty Insurance policy verification solution, announced a new partnership with Branch Insurance. LenderDock also specializes in automating lienholder process management services.

Through the partnership, LenderDock’s Base Platform will help Branch’s service and support teams eliminate time-consuming lender communications such as phone calls, emails, and paper mail. LenderDock Base includes the Verifi™ and Correxion™ services. In addition, Branch looks to implement LenderDock’s Notifi™ service, which facilitates the electronic delivery of loss payee, billing notifications, and escrow billing.

“Our partnership with Branch represents a true collaboration in “doubling down” on better ways to cut costs and streamline operational processes that are cumbersome or unnecessary. There is a shared vision of fast-tracking to an environment where technology truly adds value and supports a customer-centric strategy,” said Frank Eubank, LenderDock’s CEO.

Branch is an insurance company that uses data and technology to make insurance easier to buy and less expensive for all. With Home, Auto, Umbrella, Renter’s, and other coverages available, Branch makes it simpler to get great coverage.

Through their instant-bind process, Branch can get most people covered in seconds while bundling home and auto insurance. Branch’s 5-star rated insurance allows for customizable coverage to fit consumers’ needs while saving money.

“Branch’s mission is to lower the cost of insurance so more people can be covered, and by working with LenderDock, we can streamline verification and notification systems, saving our members time and money,” said Joe Emison, Branch Co-Founder, and CTO. “We look forward to enhancing the experiences of our customers and our support staff through this partnership.”

About LenderDock Inc.

Headquartered in Salt Lake City, Utah, LenderDock Inc. is the leading provider of online Property and Casualty Insurance policy verification and automated lien holder process management services. The policy verification-as-a-service (VaaS) platform offers banks, lenders, and financial third parties the ability to digitally verify and correct home and auto policy-related data in real-time.

About Branch Insurance

Branch is home and auto insurance that’s simple to buy and built for savings. Through its revolutionary instant-bind capability, Branch removes all of the friction associated with getting covered, helping consumers bundle their home and auto insurance with ease. Built as a reciprocal exchange, the Branch Insurance Exchange taps into the power of community to make insurance more accessible and affordable for everyone. Branch is a Public Benefit Corporation and Certified B Corporation committed to meeting high standards of social and environmental performance, and accountability. To learn more, visit Branch.com.

January 11, 2023
Automation Business Featured General Insurance

Through the use of technology, we now have much larger access to behavioral data that provides us with a wealth of insight into risk and exposure.

The insurance sector has a storied history of encouraging development and aiding society during times of transformation. In spite of these successes, the intricate global supply networks and digitalization we have today are proving to be more difficult risk areas for experts to handle.

To keep up with the shifting trends of today, we must embrace a world where economic value is prominently comprised of intangible assets such as intellectual property, data, and digital elements instead of physical possessions like property or machinery. Intangible risk factors are also among the greatest sources of business volatility currently – from reputation harm to cyberattacks and interruptions in operation due to unexpected events like pandemics.

Today, rapid technological progress and complex global networks are making it challenging to identify and measure some of the more traditional insurance risks. But that’s only the beginning; with clean energy, AI, and shared economies all becoming ubiquitous, revolutionary changes in our industry could be just around the corner. To keep up with this influx of developments—and remain relevant players economically and socially—insurers must modify their business models or face becoming obsolete.

Time is of the essence

The insurance industry’s secret to success is its unique perspective on time. It’s time for us to invest in long-term strategies for managing our risks and capital: Insurers are exceptional at digging into historical data to uncover patterns, as well as comfortable taking care of tail risks. After all, who else really prepares for events that happen once every four centuries?

This recipe has been successful historically, as change usually took place gradually even when disruptive innovations drove it. This timeline enabled insurers to be present for society in the explosion of international trade during the 18th century, industrialization and modern finance in the 19th century, and internal combustion engine and electronic communications within the 20th century.

Innovation in the 21st century moves at lightning speed; not only is technology advancing rapidly, but new disruptions are adopted with unprecedented haste. Facebook was just launched in 2004 and has since reached nearly three billion users worldwide. Similarly, Apple’s iPhone debuted to the public in 2007 – now over 4 billion people have smartphones! Last year marked an impressive 16.5 million electric cars on the roads across the world – a figure that has almost tripled within three years alone: many of these car manufacturers plan to transition completely to electric vehicles by 2030!

Competing to stay significant

Entrepreneurs, scientists, and investors are all confronted with the dangers related to pioneering endeavors. However, it is the insurance industry that provides a structured way of helping society counterbalance these perils while dealing with the volatility connected to widespread adoption. Just think about digitalization – when utilized on a large scale, this technology can become incredibly risky as there will be greater dependence on critical communications infrastructure.

To successfully adopt innovation, insurers must be able to respond and adapt swiftly to the disruptive nature that comes with new ideas. Currently, a battle is taking place within the industry as organizations race against each other to resolve this problem. Technology firms have access to plentiful data about hazards and are not restricted by any existing business strategies; additionally, customers can now use technology and data for self-insurance purposes or even exchange risks with others – creating more competition for insurers.

The insurance industry stands at a pivotal moment – remain as we are, avoiding risks that cannot be easily quantified and understood or up our investment in finding better ways to measure risk. Continuing with the traditional approach of assessing danger is a surefire way to become obsolete. It’s time to choose wisely and make the right decision if we want to stay competitive.

A blank slate

For businesses seeking innovative solutions to risk management, data is the answer. Although industry trends have traditionally relied on descriptive metrics such as location and type of business, technology now enables us access to behavioral information that provides a more comprehensive understanding of potential risks – from individuals’ shopping habits to their cybersecurity posture. This allows an insight into risk levels that were previously inaccessible using only surface-level descriptors.

If a new insurance provider were to begin, would it rely solely on traditional descriptive data, or seek out the advantages of modern behavioral data? Would an underwriter be content asking questions such as age and gender, or looking for information about driving skills and habits? Behavioral data has long been regarded as a complementing tool alongside its predecessor. In today’s industry, however, using only traditional methods may soon become obsolete; instead opting for more reliable contemporary alternatives that offer richer insights into customer behavior.

Looking to stay relevant

Insurance companies are just beginning to acknowledge the possible benefits of utilizing data aside from what is traditionally used as a measure of risk. To expedite this process, it is vital to invest in innovative ways to collect behavioral information and deploy nimble tools that will provide us with insight into potential risks. It’s time for insurance providers to reclaim their essential part within our innovation system — being at the forefront of enabling society to gain access to new innovations and successfully confronting any issues caused by sources of uncertainty.

December 28, 2022
Business Featured General Insurance

Today, people are used to getting whatever they want within a few hours or less. This is not limited to physical objects: people also want immediate cost estimates for services, fast access to digital media, and quick responses from qualified experts when they have questions.

Speed has become such an important aspect to customers that they are now willing to spend more money for a speedy service. If your company doesn’t provide a fast customer experience, you can be positive that other businesses do – which will then lead to your company losing prospective and current customers.

Speed equals satisfaction in insurance

Quick issue resolution is a significant part of customer satisfaction and retention when it comes to insurance companies. People generally don’t like waiting, not even for a few minutes on hold, which can consequently lead to a negative Customer Satisfaction Score (CSAT).

The insurance industry SMS messaging provider “Hi Marley” found that the quickest time to first contact (TTFC) led to higher success rates for claims adjusters. Out of all their performers, those who reached out to clients within three minutes had an 80 percent chance of making initial contact within three and a half hours. However, it was noted that those at the bottom of the performance scale took up to two days before contacting customers- severely hurting any chances or relations with them.

What many don’t know is how much of an impact speed can have on not only customer satisfaction but also profitability. The Hi Marley study discovered that, generally, the best-performing claims adjusters were able to close out claims 10 percent faster than the lowest performers. This meant completing each claim three days sooner, on average.

If you want to improve your business in various ways, then get rid of any processes that frequently cause problems. This may involve employees being able to do more in a shorter amount of time or expanding their volume of work without needing extra staff members. By taking out these delays in your processes, everyone will likely be happier with their job and customers will enjoy the service they receive.

Insurance has a speed issue

According to a PwC 2018 study, nearly 80% of global survey participants said that “speed, convenience, knowledgeable help, and friendly service” were vital for an excellent customer experience. Customers think the insurance industry should prioritize these traits 18 points higher than where they currently stand.

The insurance industry is notoriously slow and Hi Marley’s data on claims satisfaction supports this conclusion. Part of the poor customer experience that insurance consumers have is due to the slowness of the industry.

Altogether, it is clear that the insurance industry’s lagging customer experience is evidently due to its inability to keep pace with customer expectations.

Increasing speed with modern insurance technology

By using SMS technology, insurance companies were able to dramatically increase customer satisfaction rates. This same concept can be applied to other areas of the business in order to speed up processes and maximize efficiency.

LenderDock takes speed and efficiency seriously and works to automate all processes for minimal human intervention.  While “old school” workflows included the manual tasks of phone calls and fax machines, there’s no need for this type of insurance communication in the 21st century.  LenderDock believes that the resources freed up from these kinds of tasks can be better allocated for meaningful provider or client tasks.

December 5, 2022
Business General Security

LenderDock recently passed the SOC 2® Type 2 Examination. So, what does this really mean for you?

What is the SOC 2 Type II report?

It is a report on the suitability of the design and operating effectiveness of the controls used on our primary systems, supportive system components, and business processes that warrant our principal service. It also provides assurance to external parties with respect to the security and availability of the systems that validate LenderDock’s lienholder process automation and the confidentiality of the information that is processed by these systems.

How is LenderDock’s SOC 2 certification measured?

The certification is issued through outside auditors. They measure the ability that LenderDock has demonstrated in following five core trust principles, which are broken down as follows:

1. Security

This section of certification refers to the protection of system resources against unwanted and unauthorized access. Access controls help prevent abuse of the system, unauthorized removal or changing of data, theft, and software misuse.

Security tools used or installed by the IT department (e.g., web application firewalls, intrusion alerts, two-factor authorization) are helpful in preventing breaches that can lead to unauthorized access to company data and systems.

2. Availability

This principle refers to how accessible the system is, as well as the products and services that are stipulated in a contract or SLA (service legal agreement). The base acceptable performance level for the system’s availability is set by both parties.

While this principle does not include system usability or functionality, it does involve security-related items that could affect availability.

3. Processing Integrity

Processing integrity addresses if a system succeeds in its purpose (e.g., delivering data at the correct time). The data processing must be complete, timely, valid, accurate, and authorized.

4. Confidentiality

Data is labeled as confidential if its disclosure and access is restricted to specific personnel or organizations. Examples include business plans, intellectual property, company finances, and other types of sensitive information.

Encryption is important for the protection of confidential information during transmission. Both application and network firewalls and rigorous access controls can be used to safeguard company information that is being stored or processed on computer systems.

5. Privacy

The privacy section addresses the system’s ability to collect, use, retain, disclose, and dispose of personal information in compliance with LenderDock’s privacy notice, as well as the criteria set forth in the AICPA’s generally accepted privacy principles, also known as GAPP.

Personally identifiable information (PII) is information that can distinguish an individual (e.g., SSN, address, name). Some personal data related to sexuality, religion, health, and race is also considered sensitive and requires extra levels of security. Controls are required to protect all PII from unauthorized access.

Significance of SOC 2

SOC 2 audits are rigid, and SOC 2 Type 2 reports are attested per the SSAE-18 standards published by AICPA. The SOC 2 framework includes the 17 principles of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Internal Control-Integrated Framework, along with supplemental controls. LenderDock’s use of security controls aligns with the COSO principles and the supplemental controls.

What this means for you

LenderDock has put in place monitoring of the health of these systems by automating most areas and has a dedicated team that oversees the performance.

In other words, your data is secure, and your process is simplified using LenderDock’s services.

August 18, 2022
Business General Insurance

Brace yourself for an economic hurricane. 

That was the advice given by JPMorgan Chase CEO Jamie Dimon at a financial conference in June. Just a few days later, Tesla CEO Elon Musk echoed Dimon’s feelings, telling his executives that he has a “super bad feeling” about the current state of the economy amid plans to cut the company’s staff by 10 percent. 

What may be coming

While these major company CEOs feel the economy is trending in the wrong direction, they aren’t the only ones who feel this way. According to a survey by CNBC, more than 80 percent of Americans believe the country’s economy will fall into a recession by the end of 2022. The University of Michigan’s Consumer Sentiment Index is falling to levels not seen in over four decades. Even economists seem more gloomy than normal, saying the odds of a recession in the next year are at 30 percent – twice as high as they presumed just a few months ago. 

Add in worker shortages, supply chain issues, and the rise of inflation, and leaders in the business world are starting to grapple with the new reality, an economic recession that could be deep and lengthy. Companies are readying for a downturn, researching ways to insulate themselves from the worst of what is seemingly coming. 

The past is the key

To solve the issue and prepare themselves for what is next, business leaders would be wise to look to the past. After all, the last U.S. recession was only 15 years ago. Looking back can help companies survive, but also thrive once the recession has reached an end. That’s where Watermark Consulting comes in. 

For over ten years, Watermark has studied the connection between customer experience (CX) and shareholder return (via third-party feedback surveys and public company stock performance numbers). The resulting Customer Experience ROI Study has now become one of the most cited analyses of its kind. While the study showed how CX-leading companies outperform their competition over the long-term, we wanted to analyze the data from just the last recession (2007-09). The results were stunning. 

CX-leading companies weren’t safe from the effects of the last recession, but they clearly fared better than other businesses. While the market as a whole and the CX-lagging companies lost a large amount of their market value, the CX-leading ones actually netted positive shareholder returns.

Customer experience matters 

It has been shown through many different studies that a great customer experience in turn leads to financial performance. It helps raise revenues, and since loyal customers stay around longer, they tend to be less price sensitive. They also entertain ideas for other products and services and they refer new customers to your company. A great customer experience also helps control – if not even reduce – expenses, since less needs to be spent on new business acquisitions (thanks to referrals and repeat business). The cost of serving these customers also decreases as fewer complaints means less pressure on the company’s operating arm. 

There are other conclusions that can be found from Watermark’s CX ROI data, mainly that the company’s customer experience quality really does influence its chances of successfully navigating an economic downturn. 

CX-leading firms appear to be better cushioned from the more severe issues of a recession, and they also seem to bounce back sooner when the economy improves. That is likely due to how customer behavior is shaped by both great product and service experiences. Businesses that offer these outstanding experiences become one of the last places that people make budget cuts, while also being one of the first they return to when their budget is less restricted. 

When an economic downturn is near, many business leaders result to knee-jerk reactions by cutting expenses to try to overcome the impact – cutting travel, freezing hiring, postponing investments, etc. – but the data in the Watermark study shows that if cost-cutting begins to undermine the quality of a customer service experience, then it could damage the company’s ability to battle back following the recession. 

So, how does a CEO or business owner capitalize on client experience to protect their company from the worst effects of the looming recession? Here are three possible strategies: 

1. Give customers a reason to return 

We aren’t quite in a recession just yet, and both consumer and business spending are at strong levels. This means companies have many chances to shape customer impressions. Take advantage of the opportunity before people begin to cut back on spending. Polish and refine your customer experience now so that there is a reason to return in the future. 

2. Cut costs by anticipating avoidable customer questions 

Believe it or not, it is possible to cut costs while also enhancing the customer experience. Shift your focus to upstream improvements that eliminate downstream and costly customer inquiries. You could have better product assembly guides, clearer, and more detailed invoices, or make the process of returns easier. These upstream improvements enhance the customer experience and can be delivered at a more competitive cost. 

3. Reexamine what is important to your consumer 

As economic conditions change, so may your customer’s needs, wants, fears, and aspirations. Product features or experiences that were relevant previously may no longer be as important. New customer requirements may also present a chance to engage consumers in a different, yet more enticing way. 

Prepare your business now

While it is not entirely possible to avoid all the pitfalls of an economic recession, the Watermark analysis does show that a better customer experience can help protect a company from the worst impacts of a downturn while also setting it up for success when the economy improves. If you deliver an experience that customers love, they’ll reward you with their business, either now or in the future. 

An original, unedited version of this article first appeared on Forbes.com 

August 9, 2022
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