OBSTACLE COURSE
FOUR PERSONAL LINES TRENDS THAT INCREASE E & O EXPOSURE by Cara Gates, Swiss Re
As the property & casualty insurance industry evolves, independent insurance agents are finding new ways to remain competitive. The challenges facing agents range from evolving consumer expectations and digital transformation to regulatory compliance, changing risk profiles and more.
As these pressures converge, they also create new areas of professional liability exposure for agencies. When clients are focused primarily on price and policies are placed under tight timelines, the risk grows that coverage differences are not fully explained or recorded. In today’ s personal lines environment, these operational challenges are not just business hurdles; they can also translate into rising errors & omissions exposure for independent agents.
Here are four obstacles insurance agencies face in the personal lines sector that can add to E & O exposure:
1. PRESSURE TO PRODUCE AND CONSISTENTLY FIND NEW PROSPECTS
An insurance agent ' s job, at its core, is to bring in money to the agency. In this competitive landscape, agents are constantly striving to meet targets and quotas. However, a crowded, hard market has agents battling for clients and seeking ways to stand out from competitors.
In a market where consumers have prioritized lower premiums over quality coverage, agents are faced with differentiating their products from others, even though there is very little distinction.
Furthermore, agencies need to provide timely quote comparisons, access to policy details, and communicate through multiple channels, including e-mail, chatbots and social media. Incorporating these technologies often requires significant investment in software, infrastructure and training.
2. DIGITAL TRANSFORMATION
Historically, agencies have relied on in-person meetings and telephone calls to service clients. The
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