Month: September 2023

What is Cybersecurity Awareness Month & Why Should You Care?

Posted on by AHI Group

As we enter the month of October, the crisp autumn air isn’t the only thing that should be on your radar. It’s also the start of National Cybersecurity Awareness Month, a time dedicated to raising awareness about the critical importance of cybersecurity in our increasingly digital world. At AHI Group, we understand that safeguarding your business’ digital assets goes beyond traditional insurance policies.

We’ll delve into why October is Cyber Awareness Month and why it should matter to you, your business, and your peace of mind. In a world where cyber threats are ever-evolving, arming yourself with knowledge is your first line of defense. So, grab a warm cup of coffee, settle in, and let’s explore the world of cyber awareness and how it can impact your life and business.

What is Cybersecurity Awareness Month?

Ever since 2004, October has been internationally recognized as Cybersecurity Awareness Month. As if October wasn’t already spooky enough, we’re dealing with businesses’ awareness of cyber threats: ransomware, cyber attacks, and data breaches. In the United States, October’s Cyber Month comes out of a collaboration between the U.S. Department of Homeland Security and the National Cyber Security Alliance. 2023 will mark the 20th annual Cybersecurity Awareness Month.

What’s even more remarkable, this year the Cybersecurity and Infrastructure Security Agency (or CISA) is partnering with the National Cybersecurity Alliance (NCA) to curate both messaging and critical resources for businesses to utilize when they go over the importance of cybersecurity awareness and staying safe online with their employees, members, and customers. 

As a business, you can also become a partner with CISA for Cybersecurity Awareness Month, and work together with the organization to help spread information about how to reduce risks online or when utilizing tech that’s connected to the Internet. Email AwarenessCampaigns@cisa.dhs.gov for more information about becoming a Cybersecurity Awareness Month partner.

Why is Cybersecurity Awareness Important?

Because around 2328 cyber attacks happen each day. Excuse the shock factor, but businesses must understand just why cybersecurity awareness is so crucial. Here’s some startling stats from 2023:

  • Between 2001 and 2021, it is estimated that a total of $26 billion was lost due to cyberattacks, breaches, and other cybercrime events.
  • The healthcare industry is easily one of the most targeted sectors, with roughly 90% of institutions in the USA having experienced at least one data breach in the last few years.
  • Between 2013 and 2019, over 70% of cyber insurance claims resulted from incident response, data breaches, and overall crisis management. 
  •  The United States is at the top of the list when it comes to countries with the highest average cost of a data breach, reigning in at 9.44 million USD. The Middle East follows with an average of 7.46 million USD, and Canada is third with 5.64 million USD.
  • 45% of all data breaches were found to be cloud-based. 

Data breaches are no joke. The thought that smaller businesses shouldn’t need to be proactive in their efforts to protect their business’s digital assets is a misconception; smaller businesses may not have the financial muscle to respond to a data breach, and they may be more tempting for cybercriminals due to their lack of cybersecurity measures. All sizes of businesses are at risk – small businesses perhaps even moreso. That’s why all organizations that use tech or access the Internet in some form need to be proactive and incorporate cyber risk management strategies. 

Risk Management and Small Businesses

In the upcoming blogs throughout Cyber Awareness Month, we will provide you with a comprehensive toolkit for managing cyber risks, tailored to businesses of all sizes. Here’s a sneak peek of the essential strategies and tips we’ll delve into:

Employee Training and Awareness

Educate your workforce on cybersecurity best practices to ensure they can identify and mitigate potential threats.

Strong Password Policies

Implement robust password policies and multi-factor authentication to safeguard your digital accounts.

Regular Software Updates

Stay current with software updates and patches to plug security vulnerabilities.

Data Encryption

Employ encryption techniques to protect sensitive data both in transit and at rest.

Incident Response Plans

Develop and rehearse incident response plans to minimize downtime and data loss in case of a breach.

Vendor Risk Management

Assess and manage the cyber risks associated with your third-party vendors and partners.

Cyber Insurance

Explore the benefits of cyber insurance policies tailored to your business’s unique needs.

Network Security

Strengthen your network security with firewalls, intrusion detection systems, and regular network assessments.

Regular Backups

Implement automated, frequent data backups to mitigate the impact of ransomware attacks.

Compliance and Regulations

Stay informed about industry-specific regulations and compliance requirements to avoid costly penalties.

These tips will serve as a foundation for your organization’s cybersecurity strategy, ensuring you’re well-prepared to navigate the ever-evolving landscape of cyber threats. Stay tuned for in-depth insights and expert advice in our upcoming blog posts throughout Cyber Awareness Month.

Bundling Home and Auto Insurance in Kansas: Combining Protection and Savings

Posted on by AHI Group

Bundling policies to reap the benefits of great savings is an often talked-about, but seldom often acted-on means to enhance both the convenience and accessibility of your insurance documents and your savings potential. As both a responsible homeowner and a vehicle owner, you understand the importance of safeguarding your assets and loved ones. But did you know that bundling your insurance policies can offer you more than just peace of mind? In this article, we’ll delve into the advantages of combining your home and auto insurance coverage, particularly tailored to the unique needs of Kansas residents. From potential cost savings to simplified management, we’ve got you covered!

*Note: Not all insurance policies qualify for “bundle and save” discounts, and the exact discount percentage will vary from carrier to carrier. Keep that in mind when purchasing policies through the same carrier, and don’t hesitate to reach out to an agent to ask about savings opportunities!

Why Do Insurance Companies Reward “Bundling?”

What is the point of rewarding return customers, anyway? Well, there’s a good reason why insurance companies offer discounts for policyholders who choose to “double up” with them.

Enhanced Risk Assessment

By offering combined coverage for home and auto insurance, insurers create a win-win scenario for both themselves and policyholders. One of the primary drivers behind this practice is risk mitigation. When a policyholder bundles multiple insurance policies with the same company, it reduces the overall risk exposure for the insurer. This is because they have a more comprehensive view of the customer’s profile, enabling them to better assess and manage potential risks.

Increased Customer Retention

Also, bundled policies can help increase customer retention. Consolidating insurance coverage makes the process more convenient for the customer, allowing them to access, pay, and file claims easier. This streamlined experience fosters loyalty and reduces the likelihood of customers seeking coverage elsewhere. Insurance companies recognize this and, in return for customer loyalty, offer various discounts and incentives, making bundling an attractive proposition.

Reduced Administrative Costs

From a financial perspective, bundling can also lower administrative costs for insurance companies. Managing a single account requires less administrative overhead than managing multiple individual policies. This cost efficiency is reflected in the form of discounts and reduced premiums offered to policyholders who opt for bundled coverage. In essence, insurance companies reward bundling as it aligns with their operational efficiencies, risk management strategies, and customer retention goals.

The Benefits of Bundling Auto and Home Insurance as a Policyholder

In our busy day-to-day lives, with so much on the go, wouldn’t it be better to have just one aspect of your life as streamlined and as easy as possible? Bundling your home and auto makes, at the very least, that part of your home and car ownership duties so much easier.

Here are three key benefits to bundling auto and home insurance as a policyholder.

Cost Savings

One of the most appealing advantages of bundling auto and home insurance is the potential for significant cost savings. Insurance companies often provide policyholders with discounts when they choose to bundle their coverage. These discounts can translate into lower overall premiums compared to purchasing separate policies. This financial relief can be especially beneficial in states like Kansas, where homeowners and drivers alike face potential risks such as severe weather events and accidents. By bundling, policyholders can secure comprehensive coverage while enjoying valuable financial savings.

Simplified Management

Managing insurance policies can become overwhelming, especially when dealing with different providers, renewal dates, and policy details. Bundling simplifies this process by consolidating everything under one roof. Policyholders have a single point of contact for inquiries, claims, and payments, streamlining their administrative tasks. This convenience not only saves time but also reduces the likelihood of missing important updates or payments. With the demands of modern life, having one less thing to worry about can bring peace of mind to homeowners and drivers alike.

Enhanced Coverage and Flexibility

Bundling auto and home insurance doesn’t just lead to savings—it can also result in enhanced coverage options. Insurance companies often offer additional benefits and perks for bundled policies, such as increased liability limits, extended coverage for valuables, or coverage for rental cars in case of accidents. Moreover, policyholders may have more flexibility to customize their coverage to match their specific needs. This tailored approach ensures that both their homes and vehicles are well-protected against potential risks, giving them greater confidence in their insurance coverage.

Note, however, that not every insurance company will offer these benefits to return customers. It helps to check, though! Give your agent or direct provider a call to ask about bundling rewards.

How to Start Bundling Your Home and Auto Insurance

Choosing to bundle your home and auto insurance is a straightforward and rewarding process. To begin, reach out to either your agent here at AHI Group or your provider directly and request quotes for bundled coverage. They will guide you through the information they need, such as details about your home, vehicles, and any additional coverage preferences. Don’t hesitate to ask questions to ensure you fully understand the coverage you’re getting and the potential discounts available.

Once you’ve gathered quotes, take the time to compare the coverage, costs, and benefits offered by different providers. This step is crucial in making an informed decision that aligns with your protection needs and budget. Remember, bundling isn’t just about financial savings—it’s about securing comprehensive coverage that addresses your specific circumstances. AHI Group is happy to help you find the right company for both your home and auto insurance needs, and wants to help you along on your journey to enjoying the advantages of bundled home and auto insurance.

Does my RV insurance in Olathe KS cover every driver in my household?

Posted on by admin

Whether or not you need to insure your RV depends on whether your RV is a motorized vehicle or if it is something towed along by something else, such as a pop-up camper or travel trailer. If you do have a motorized RV in Olathe, KS, you do need to make sure you have the proper insurance to protect your assets. At  AHI Group, we can help you make sure you have the coverage you need.

Legal Requirements

If your RV is self-propelled, you need to have coverage much like regular automobile coverage. 

  • Liability insurance will pay other people’s property damage and medical bills if you are found to be at fault in an accident. The state has minimums, but you can speak to your agent about whether you are comfortable with minimal coverage.
  • Personal injury protection (PIP) pays medical bills for you and your family after an accident, no matter who is at fault.
  • Uninsured motorist protection helps you if you are in a collision with an uninsured motorist.

Who Is Insured to Drive?

When you fill out your insurance application in Olathe, KS, you will be asked to list your household members. During that time, you will list all the people who will be driving the RV. An RV is a serious piece of equipment, and it is important that you are honest about who will be behind the wheel. 

RV insurance usually follows the vehicle, not the driver. That means that the claim will probably be paid, but you need to add anyone who will be a regular driver. If anything changes while you have the policy, you should contact your insurance company right away. If you have any questions about RV coverage, please feel free to call AHI Group today.

What Factors Determine Home Insurance Rates in Nebraska?

Posted on by AHI Group

Year-round threats of disasters ranging from lightning storms and tornadoes to record-breaking snow dumps make home insurance in Nebraska a must. If you have a mortgage, odds are you’re probably in need of home insurance anyway – and even if you don’t, you’ll want to protect your asset!

How much you pay for your homeowners insurance depends mostly on your home’s replacement cost and how much dwelling coverage it requires. Don’t think that skimping on your dwelling coverage will save you money – if there’s a disastrous loss, you’ll be responsible for paying the difference between what your home would cost to rebuild and what it’s insured for! 

Let’s take a look at the average cost of home insurance in Nebraska and the most common rating factors for home insurance.

What is the Average Cost of Home Insurance in Nebraska?

The average cost of homeowners insurance in Nebraska for a policy with $300,000 in dwelling coverage is estimated to be about $3,510/year. Below is a breakdown of how an increase in your dwelling coverage limit might impact your rates.

  • A home with a $200,000 dwelling coverage limit is estimated to cost $2,660/year to insure.
  • A home with a $400,000 dwelling coverage limit is estimated to cost $4,369/year to insure.

By comparison, the national average (as of September 2023) sits at about $1,754/year. Home insurance in Nebraska tends to be higher than in most other states, in part due to its volatile weather patterns. We’ll get into a little more detail about why that matters in the sections below.

Rating Factors for Home Insurance in Nebraska

Insurance companies in Nebraska use complex algorithms to assess these factors and determine your premium. To get more accurate information for your situation, consult with a rep from AHI Group.

Home Safety Features

Having security systems, smoke detectors, burglar alarms, and other safety features can reduce the risk of theft and damage, potentially leading to lower premiums. Also, the proximity of your home to a fire hydrant or station can impact your premium. Homes closer to fire protection services may have lower premiums since they’re likely to receive help in time if there’s an accident.

Claims History

Your past insurance claims can influence your premium. If you’ve had multiple claims or high-value claims, insurers might view you as a higher risk and charge higher premiums.

Home Characteristics

Things like construction, age, etc. can affect insurance costs. Newer homes or those built with fire-resistant materials can have lower insurance premiums. The square footage of your home and its overall value can also contribute to the replacement cost, which affects the premium, and the type of your roof (whether it’s fire-resistant, more durable, made from metal, etc.) can play a role.

Location

The geographic location of your home plays a significant role. Factors like the distance to a fire station, proximity to water bodies (which could increase flood risk), crime rates in the area, and the history of natural disasters in the region can impact your premium. Nebraska has a volatile weather history, but some cities are more prone to poor weather than others.

Deductible

The deductible is the amount you agree to pay out of pocket before the insurance coverage kicks in. A higher deductible often leads to lower premiums, while a lower deductible increases your premium.

The Weather in Nebraska

Nebraska is no stranger to extremes in weather, which is one of the major reasons why home insurance costs are so high in the state. Larger cities closer to bodies of water or that are just generally closer together may also be more subject to rate hikes.

Fires in Nebraska have become more frequent due to potential climate change impacts, burning tens of thousands of acres and removing people from their homes. In April 2022, two fires two weeks apart burned a chunk of land near the size of Omaha by Cambridge, resulting in almost $2.3 million in damages. As insurance companies respond to claims of houses having been burned down, and roofs ripped off by severe weather, they’re having to raise their premiums to ensure their pool is sufficient to continue paying out more claims. And what does this mean? Higher premiums.

Combating Higher Premiums with AHI Group

While Nebraska does see some of the highest home insurance premiums, all is not lost. AHI Group has plenty of reputable insurance carriers that we do business with, and we’re happy to find you a match that gives you the best price. We’ll also provide you with tips on how to save money, such as:

  • Installing smoke alarms and burglar alarms
  • Raising your deductible
  • Qualifying for multiline insurance discounts
  • Taking preventative safety measures around the house
  • Replacing your roof with fire-resistant materials

Give us a call today to start a quote for your Nebraska home insurance. We’re happy to help you find a more affordable solution so you can continue protecting your home with ease of mind.

What Does Auto Insurance Cover in the State of Kansas?

Posted on by AHI Group

If you’re on this blog, you’re probably already aware that, as a driver, you must purchase auto insurance. You might be shopping for a new vehicle and therefore need insurance, or you’re looking to find a more affordable policy to protect yourself and others on the road.

In the United States, most states require bodily injury liability insurance (apart from Florida.) New Hampshire is the only state where you do not need any car insurance, but you are required to show proof of financial responsibility. In Kansas, auto insurance regulations vary somewhat: four types of coverage are mandatory, and many others are highly recommended. Let’s dive into what auto insurance covers in the state of Kansas.

Mandatory Auto Insurance Coverage in Kansas

In Kansas, when you purchase auto insurance, you are purchasing several different coverages that come together as a single package. Each type protects you against losses of a different variety. We’ll provide a brief overview of each basic (mandatory) coverage in this section, and then later we’ll get into some optional (but highly recommended) auto insurance coverage options.

Bodily Injury Liability

In the event of an accident where you, as the driver, are deemed at-fault, this coverage kicks in to pay for the other involved party’s medical expenses, funeral costs, rehabilitation costs, and other covered costs. If a lawsuit kicks up, then this coverage may also pay for the settlement of those lawsuits, plus any ensuing legal expenses that you’re faced with.

  • Per state law, liability coverage must have minimum coverage to pay for $25,000/person for bodily injury and at least $50,000/accident for bodily injury.

Property Damage Liability

Property damage liability triggers the same way bodily injury liability does: when you were at-fault in an accident and caused damage to another person’s property, whether that’s their car or even their home, this coverage kicks in to pay for the repairs, replacement, or cash value of the property lost. It can also help to pay for any ensuing legal costs.

  • In the state of Kansas, currently, law mandates that property damage liability must have coverage of at least $25,000/accident.

PIP/Personal Injury Protection

Personal injury protection, or PIP, pays out for any necessary lost wages, funeral expenses, rehabilitation costs, medical expenses, and even in-home care or assistance if you or your passengers were injured in an accident regardless of how fault was assigned. Each passenger in different vehicles would collect under their own policy rather than pursuing the other driver’s insurance company for compensation.

  • In the state of Kansas, automobile insurance law requires that policies sold must contain the minimum levels of coverage as detailed below:
    • $2,000 for funeral, cremation, or burial expenses
    • $4,500/injured person for medical expenses
    • $900/month for one year of loss of income/disability
    • $25/day for in-home care services
    • $4,500 for rehabilitation services and care

Uninsured/Underinsured Motorist Protection

Despite auto insurance being mandatory in the state of Kansas, some drivers choose to forgo coverage illegally. If an accident results where an uninsured, underinsured, or even unidentified driver (such as a hit-and-run) is at-fault then this coverage pays for medical, funeral, or rehabilitation costs, as well as the cost of lawsuits. It would also pay out if you or a family member were a pedestrian hit by an uninsured/underinsured or unidentified driver.

  • In Kansas, policies for uninsured/underinsured motorist protection must include a minimum of $25,000/person and $50,000/accident.

Optional Auto Insurance Coverage in Kansas

Not all coverage in the state of Kansas is mandatory, and some may be purchased at your own discretion to ensure fuller coverage and more comprehensive insurance.

Comprehensive Coverage

This coverage goes beyond accidents, protecting your vehicle from non-collision incidents such as theft, vandalism, natural disasters, and falling objects.

Collision Coverage

In the event of a collision with another vehicle or object, collision coverage helps pay for repairs to your own vehicle, regardless of fault.

Towing and Labour Coverage

Also called roadside emergency assistance coverage, this coverage kicks in if your car should break down. It helps to cover the cost of any necessary roadside assistance services, such as towing.

Gap Insurance

This optional coverage is only applicable to those who finance or lease their vehicle. If your car is totalled or stolen and its value is less than your outstanding loan or lease balance, gap insurance can help cover the difference.

How Rates Are Determined for Auto Insurance in Kansas

One of the biggest questions that is asked when purchasing auto insurance is, “how much does it cost?” You want to save the most on your auto insurance in Kansas, and we understand.

There are two major factors that will determine just how much you end up paying for your auto insurance in the state. Those are the rating of your vehicle and underwriting. Underwriting is essentially the process by which a company considers the various factors regarding you and your driving habits. These tend to be your driving record, where you live (within Kansas, since not all neighbourhoods or areas have the same traffic statistics) the make and model of your car, gender, prior insurance coverage, how often/far you drive, and more.

In Kansas, insurance companies take these factors into account and then place you into a rating category. The ones with the best risks, aka the safest drivers, are placed into preferred categories and are given the lowest rates. Standard is a little riskier, so these are slightly higher rates for moderate-risk drivers. And then, finally, there are non-standard or “high-risk” drivers who can be uninsurable for some insurance companies depending on their risk profile and who will see the highest rates.

As a driver living in Olathe, Kansas, or any other of our service areas in Kansas, we advise you to contact AHI Group, one of Kansas’s premier insurance companies specializing in auto insurance. We’re happy to help you get the best rates possible and insure your first, second, or sixteenth vehicle – whatever your situation might entail.

Does Homeowners Insurance Cover Students at College?

Posted on by AHI Group

It’s that time of year again. Summer’s behind us and the leaves are turning red, yellow, and brown. Whether this is your child’s first time away at college or going into their second, third, or even fourth year, keeping your child’s school possessions, such as their laptop or bike, safe should be a priority. You might be wondering what kind of insurance will cover them, whether that’s a policy that needs to be acquired separately or if they’ll have coverage under your existing home policy like they would have when they were still living at home. AHI Group is happy to keep parents and students informed as we begin transitioning back into school. For many, this can be an exciting, stressful, or even overwhelming time – so we’d like to take at least one worry off your shoulders. The short answer is: yes, your homeowners insurance will provide some coverage for your college student’s belongings, but conditions can apply.

If Your Child is Living in a Dorm…

Then coverage will typically apply. For example, say your child’s bike was stolen. In this case, and assuming your student is living on campus in a resident dorm, your home insurance may cover the costs to repair or replace the bike. Your home insurance might also apply if your child accidentally injured someone or caused damage to campus property (although it would be your personal liability coverage that would kick in, not your contents coverage).

Depending on the insurer, however, coverage can vary and be limited. You’ll need to discuss your child’s situation with your insurer to confirm that they will have coverage. Oftentimes, the insurer will require the child to be under a certain age and live in a campus dorm. They may also limit how much they will pay out for property damage/theft that occurs while your child is living away from your home.

How Does Home Insurance Cover a College Student Living on Campus?

As long as your child meets your insurer’s qualifications, they can have coverage under their parent’s home insurance policy. In this case, two aspects of your home insurance (as the parent) will apply in the event something happens: your contents coverage and your personal liability coverage.

  • Your personal property coverage may help your child cover the costs of repairing or replacing any of their belongings if they’re stolen or damaged (although the damage would have to be due to a covered peril, like weather or fire.)
  • Your personal liability coverage may help cover your child if they are legally responsible, or liable, for damages to property or someone else’s injuries. This coverage can pay out for damages, including property repair, medical bills, and legal defence.

In the event, that your child’s dorm is broken into and their laptop is stolen, or they’re held responsible for damaging campus property accidentally, you could file a claim with your insurance company, who could then reimburse you for the stolen laptop or pay for the damage costs. Your child should keep an inventory with receipts or other documentation of their belongings to expedite the claims process and ensure a quick and fair settlement.

You would also still be responsible for paying out your home insurance deductible in the event of a claim, specifically when you’re filing a claim under the contents portion of your coverage. Common policy deductibles range between $500 to $1,500, so if the amount lost is anything less than this, your claim would likely end up being denied. 

When Would a Child Not Be Covered?

Certain insurers may not insure your student away from home while attending college if they:

  • Don’t live on campus/college-sanctioned housing
  • Are older than a specific age (usually 25)
  • Are not a full-time student attending the college

If your child lives in a separate apartment or building off-campus, then they would likely need their own tenant’s insurance policy to cover their belongings. 

When Does My Child Need Renter’s Insurance?

College students may be deemed ineligible for coverage under the parent’s homeowner’s policy if they are living off-campus, or sometimes if they’re not a full-time student or above a certain age. They may, at this point, need their own renter’s insurance. Renter’s insurance is a limited form of home insurance that covers the tenant’s liability and belongings. Usually, the building that the renter is living in will be covered by the landlord who owns the property (hence why the tenant’s insurance doesn’t include a dwelling component, as the building isn’t owned by them.) 

Renter’s insurance is one of the cheapest insurance policies on the market, costing as little as $10/month with relatively low deductibles. Certain companies will also offer dorm insurance, which is very similar to renter insurance but a little more tailor-made for those living in dorms and not apartments. 

Plus, if your child has a car, they can qualify for a multiline policy discount by bundling their renter’s insurance with their auto policy! Most, if not all insurers offer bundle discounts for renter’s insurance.

Discuss with an AHI representative today if you’re sending off a child to school and you’re concerned about coverage for their possessions. We’re happy to discuss existing coverage and to explore the possibility of a separate renter policy for your child.

Diving into the Future: How AI is Transforming Auto Insurance Underwriting

Posted on by AHI Group

AI has made remarkable strides in its development, although it is still a long way from replicating human intelligence. In today’s world, we encounter artificial intelligence in various aspects of our lives, such as using algorithms to discern customer preferences in e-commerce shopping and managing chat boxes, among other applications. The insurance industry has also embraced AI, leveraging its capabilities to refine the underwriting process and provide customers with more precise policy pricing.

The advancement of AI has raised some interest in how it’s going to make a mark on the insurance industry, but the truth is that insurance has already transformed due to AI’s influence. AI has become commonplace in insurance as an inclusion in the underwriting process and in how risk is assessed. AI may also transform the way we drive with the emergence of autonomous vehicles, which in turn will alter how we determine fault for insurance collisions. Let’s get into it.

AI in Auto Insurance: Revolutionizing Underwriting

First, let’s look at how auto insurance is playing a significant role in transforming the process of underwriting. Underwriting, the act of assessing a prospective policyholder or business’ risk, was once a process done manually. Now, with the incorporation of AI, underwriting can be automated, expedited, and even enhanced in its accuracy.

The Traditional Underwriting Process

Auto insurance underwriting is the critical process by which insurance companies assess risks and determine policy premiums for individual drivers. Traditionally, this process relied heavily on manual assessments, historical data, and actuarial models. Human underwriters would painstakingly analyze vast amounts of information to evaluate a driver’s risk profile, resulting in a time-consuming and often less accurate process.

Advantages of AI-Powered Underwriting

Incorporating AI into underwriting processes boasts a wide array of benefits, including:

  • Improved Accuracy: AI’s ability to analyze extensive data sets ensures a more accurate assessment of a driver’s risk profile. Factors such as driving behavior, past claims history, vehicle type, and environmental conditions are considered in a comprehensive manner, leading to more precise premium calculations.
  • Faster Decision-Making: With AI, the underwriting process becomes significantly faster. Decisions that once took days or weeks can now be made in a matter of minutes, expediting policy issuance, and enhancing customer satisfaction.
  • Customization and Personalization: AI enables insurers to offer more personalized policies tailored to individual drivers’ specific needs and behaviors. Usage-based insurance (UBI) models, which rely on telematics data collected through devices or smartphone apps, allow insurers to reward safe driving habits with discounted premiums.
  • Risk Mitigation: AI-driven risk assessment can identify high-risk drivers more accurately, leading to improved risk mitigation strategies. By targeting risky behaviors and trends, insurance companies can incentivize safer driving practices and ultimately reduce the frequency and severity of accidents.
  • Enhanced Underwriter Support: Rather than simply replacing human underwriters, AI assists them in making more informed decisions. The technology augments human expertise, providing valuable insights and recommendations based on data analysis.

One of the biggest fears of AI’s adoption is that it will “replace” human workers. This isn’t true. Instead, AI aims to support human workers and handle some of the simpler tasks to instead pass off more complex matters to human employees.

AI-Powered Risk Assessment in Auto Insurance

Risk assessment is the process of assessing an entity or individual’s risk. Not unlike underwriting, risk assessment is the analysis of someone’s risk profile. In auto insurance, that risk is how likely the driver is to get into an accident/have their vehicle damaged.

Risk assessment is not only key to pricing insurance, but it’s also the pinnacle when it comes to ensuring sufficient coverage. Without accurate risk assessment, policyholders will receive cookie-cutter insurance policies that may or may not be enough to cover them if a loss occurs.

With AI, risk assessment is easier, more detailed, and based on thousands, if not millions, of existing user databases and statistics that AI can shift through in mere seconds to extract valuable information and gauge a driver’s risk based on the extricated material.

Autonomous Vehicles and the Future of AI Technology in the Insurance Industry: Concluding Thoughts

While this isn’t specifically targeted toward insurance, autonomous vehicles are also something to be considered when the topic of AI is brought up. Autonomous vehicles are essentially driverless vehicles and have been in testing for the last several decades. There aren’t many available to the public, but it’s estimated that they’ll begin hitting the streets in the next few decades. With autonomous vehicles comes the question of determining fault for insurance companies: can a single driver be considered at fault in a collision when there’s no actual “driver?” Would the litigation then fall on the manufacturer instead? Would autonomous vehicles severely reduce the number of accidents, and thereby lower total property loss costs – and consequently premiums as well?

There are a lot of questions that have yet to be answered, especially since we aren’t seeing common use of autonomous vehicles yet. It’s an interesting prospect, nonetheless.

The integration of AI into auto insurance underwriting represents a paradigm shift in the industry. For both the sellers of insurance and the buyers, AI has the potential to reduce insurance costs due to enhanced underwriting capabilities, reduce collisions with autonomous vehicles, and enhance the way risk assessment is done, for better insurance coverage.

For more questions about auto insurance and AI, or just questions about your own auto insurance policy, give us a call at AHI Group today.

Archives

Categories