7 activities of insurance that you may not know about

Insurance seems like one of those things you don’t have to worry about – just pay your premiums and then let the insurance company handle everything else. But did you know that insurance agents can provide more than just basic coverage? Here are seven activities of insurance that many people may not realize that their agent provides.

1) Risk Management

Managing risks effectively is a key function of any organization, and it’s important to consider your team’s expertise when choosing an insurer. When building an insurance package for your business, don’t just look at premiums and deductibles. With coverage for property damage, cyber security, personal liability, worker's compensation and more—work with experts who can help build a comprehensive policy customized to your needs. Ask about adding endorsements like extended reporting or waiver of subrogation to protect your employees from unnecessary litigation. Be sure to find out if there are specific programs offered by local agents through groups like Independent Insurance Agents & Brokers of America (IIABA) or Independent Insurance Agents of Texas (IIAT).

2) Claims Processing

If you are an insured person, and your vehicle is damaged or stolen, then claims processing is what happens to get it fixed. One common thing to keep in mind during a claims process is that there are two parties involved: those involved in damage done by someone else (the claimant) and one who will pay for it (the insurance company). It’s easy for both sides to lose track of each other and make mistakes. For example, when you file a claim with your auto insurance company, they often need to send out an adjuster to assess damages.

3) Customer Service

Although few companies think of themselves as providing a service, almost every organization offers some kind of service. Your customers expect a certain experience when they walk through your door or visit your website. Providing quality customer service is one way to stand out in a crowded market, differentiate yourself from competitors and give your customers a reason to come back. At its core, customer service is really just good communication — so even if your company isn’t traditionally thought of as providing a service, there are likely some ways you can improve communication with your customers and clients.

4) Fraud Prevention

Insurance is used to ensure people and companies don’t experience financial hardship caused by external events. One part of an insurer’s job is to fight fraud, which occurs when someone intentionally causes an event to happen or files a claim for money he or she isn’t due. Insurance fraud costs insurers $40 billion annually in fraudulent claims. There are three types of insurance fraud: first-party, second-party, and third-party.

5) Controlling Costs

One major role of an insurer is to control costs, so they can maintain profitability. Insurance companies will do their best to ensure they pay out as little as possible while charging their policyholders as much as legally permitted. Naturally, you will want to avoid doing business with insurers who cut corners at every turn, and be sure to do your homework before purchasing a policy from any insurance company.

6) Business Development

Insurance is a business based on trust. Without it, many business owners would have to invest in expensive capital equipment and personnel to handle risks on their own. By purchasing insurance, they can obtain peace of mind while also benefiting from economies of scale—they aren’t paying extra for coverage they don’t need. The role of an insurance professional is to help clients select policies tailored to meet their specific needs and budget. (Here are seven common activities.)

7) Innovation and Research

Insurance is a constantly changing industry. In fact, it’s one of those industries where change is practically guaranteed—things are always shifting and evolving, be it through regulation or customer demand. So, to stay competitive, an insurer needs to ensure they’re aware of these changes as early as possible in order to innovate and stay ahead. The more information you have on emerging trends in your industry, including global regulations and consumer behavior, the better equipped you will be to continue offering services your clients need.

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