Skyrocketing HO insurance claims call for smart insurance software

Weather patterns in recent years have been wreaking havoc with homeowners and insurance carriers alike. According to a study of homeowners insurance claim trends between 1997 and 2011 by the Insurance Research Council (IRC), the cost of homeowner’s insurance claims has skyrocketed, with the average claim payment per insured home up 173 percent nationwide during that time period. In 2011 alone, homeowners insurance claim costs per insured home increased 27 percent.

While it may be nearly impossible to pinpoint the cause of our increased catastrophic weather events, it doesn’t take a scientist to see what’s driving higher homeowners insurance claim costs – rising claim severity and increased claim frequency.

Claim severity

Between 1997 and 2011, the average payment per paid claim increased almost 200 percent nationwide. Catastrophic tornadoes, hurricanes, hailstorms and other weather events in recent years have played a huge role in that increase. In fact, catastrophe-related homeowners insurance claims accounted for 39 percent of overall claim costs nationwide from 2004 to 2011, up from 25 percent between 1997 and 2003.

Claim frequency

From 1997 to 2005, the frequency of insurance claims not related to catastrophic events actually fell. But since 2005, that claim frequency has risen 2.9 percent per year, while the frequency of catastrophe-related claims has remained fairly flat.

How can insurance software help you keep up?

In light of these insurance trends and the many other variables and uncertainties completely out of your control in this industry, you need to make sure you have a handle on the things you can control. Your choice of insurance agency software needs to be a smart one.

With insurance claims increasing in frequency and severity, you’re dealing with more information and more paperwork than ever before. Without the right insurance software, you’re likely wasting a lot of time keeping track of everything, missing out on opportunities to maximize the data you collect, not reaching your customers as efficiently as you could be, and suffering lost productivity and profits.

You need solutions

Today’s brokers and insurance agents are facing many daunting challenges in responding effectively to this rapid growth in claim severity and frequency. You need an insurance software solution that streamlines your operations so you can focus on serving your clients. The right insurance software can help you… 

  • Connect with customers and prospects more efficiently and effectively
  • Automate your most time consuming administrative tasks
  • Maximize and optimize data for more targeted communications and cross-sell opportunities
  • Achieve paperless processing efficiency
  • Boost your productivity and your bottom line
  • Manage the lead generation process

If you want to see firsthand how choosing the right insurance software solution can give you more control in today’s rapidly evolving market and homeowners insurance trends, request an Agency Matrix demo today.

Topics: insurance agency software, insurance agents, insurance customer communication, insurance software, homeowners insurance trends