These are the key terms of the insurance industry: part 2

Having the backing of insurance has become essential for everyone, since life is unpredictable and a clear fact of this was the appearance of Covid-19 in 2020, which took us all by surprise.

That is why having insurance is essential since we can not only protect our personal and real property, but also be supported in the event of an accident or illness. In this sense, we want to share with you the second part of the article where we explain the keywords that you must understand before taking out insurance.

Let us begin!

What is the grace period?

It is the fixed period during which the coverage of the life insurance policy remains in force, even though the corresponding premiums have not been paid. It is usually 30 days from the premium payment due date.

What is the endorsement?

It is a document where any correction suffered by the policy is disclosed.

Lack of insurance

This is the period of time from the beginning of the coverage period, during which the insured is not entitled to payment of compensation.

What is insured matter?

It is the object that is intended to protect against risks and a detailed description of what will be insured is made in the policy.

What is the insured amount or capital?

It refers to the value in which the insured has estimated that the assets he insures have and that they belong to the maximum amount of compensation that the insurer is obliged to pay in the event of a claim. It should be noted that in the case of life insurance, the amount insured is directly related to the premium paid and not to the value of the insured material.

What are coverages?

They refer to the set of risks that are transferred to the insurer due to the insurance, whose occurrence forces the company to pay the insured an indemnity up to the limit of the insured amount (according to the terms established in the particular and general conditions of the policy.

What is automatic renewal?

It is the agreement between the parties, where the insurance can be tacitly extended for a new period of validity unless the insured cancels it.

There are many terms that come to light when thinking about insurance, and it is possible that we get confused and have many doubts.

We hope this article has been useful to you. Soon we will be sharing part 3, because yes, there are many important words within the insurance sector. Wait for her!


How important is it to prevent wildfires?

As we approach spring and summer, we know that it is one of the most ideal times to enjoy outdoor activities, one of the most favorite being the beach or the pool. However, we tend to forget the care and necessary measures that we must have as citizens to prevent forestal fires, which are quite common in Chile at this time.

In recent years, Chile has been in danger of forest fires for at least eight months of the year, which clearly translates into an investment of resources to prevent and combat these types of accidents. It is known that the national budget for the year 2020 for the fire season has reached 63,000 million pesos.

Around 7,000 forest fires occur in Chile and originate when environmental conditions, such as lack of rain, higher air temperature and south wind flows. This occurs between October and April, not only due to the causes already mentioned, but also due to the carelessness of negligent people who increase the probability of a fire occurring.

That is why we want to do our bit and share with you these measures that can help prevent forest fires:

  • Don’t throw matches or cigarette butts on the ground.
  • Do not smoke in places with dry vegetation that could burn.
  • Avoid lighting bonfires in areas close to vegetation.

If it is strictly necessary to make a fire:

  1. Do it in an area away from branches, trees or elements that can ignite with fire.
  2. Delimit the area of ​​the fire with stones or sand to prevent its spread.
  3. Keep nearby items that can be used to put out the fire such as sand, water or dirt.

Preventing forest fires is everyone’s job, since in some way we have even been participants without realizing it. We must educate and be aware of the consequences that all this can bring, such as: damage to the soil, destruction of the habitat of wildlife, loss of plants that generate oxygen, increases the greenhouse effect in the atmosphere due to the emission of carbon and others harmful elements for the environment, among others.

Let’s be aware!


Learn about the influence of cyber risks in the insurance market

Cybercrime is one of the greatest risks that companies are exposed to on a daily basis today, where the Internet of things, social networks and applications have provided an environment conducive to exponentially increasing spaces of vulnerability.

These types of attacks are one of the most accentuated concerns for companies, institutions and governments. Cybercrime has managed to structure itself to break any security barrier and does not discriminate when attacking and choosing its victims. A hacker attacks on average every 39 seconds.

These attacks are based on:

  • Information theft.
  • Obtaining personal data.
  • Theft of bank passwords.
  • Disable teams.

On average there are in 2020, more than 200,000 million devices connected and exposed to attacks, with an incalculable security breach. This panorama is causing the cybersecurity sector to change its way of approaching the fight against cybercrime and to organize itself more and more around the protection of information, the most valuable asset.

Fundación MAPFRE assures that companies must be aware of the need to incorporate cybersecurity within risk management in order to be able to obtain preventive measures and plans to detect vulnerabilities.

One of the most emphasized points by MAPFRE is the one that ensures that companies must change their mentality in order to work together with insurance companies so that insurance does not become an analgesic element in the absence of security measures. Policies associated with technological risks are currently evolving due to the development of digitization and the use of new technologies.

The clear lack of data on claims and their evolution, has indicated the need for companies to study the risks they insure with better precision. In the same sense, it is essential to know the true scope of your computer protection systems and qualify their resistance capacity in the event of a cyberattack.

This is a very positive scenario for insurance, since it is expected that in about ten years the global volume of premiums for this type of insurance will increase to more than 20,000 million dollars, as a result of an increase in the number of claims at the global and the existence of an increasingly interconnected and digitized business environment.


These are the 5 most common types of fraud in insurance companies

Fraud is one of the most common activities against insurance companies, and those who participate in this crime seek to appropriate benefits or compensation that clearly do not correspond to them.

Currently, these types of actions continue to occur and the sanctions are not really taken into account so that they do not continue to occur.

There are many cases of attempted fraud caused by the insured, where they have exaggerated and wanted to show that the accident has caused them more damage than they have actually suffered, such as taking advantage of a small blow to the car to receive compensation that allows them to fix a part or paint any part of the vehicle.

However, fraud does not always occur on the part of the insured, since insurance industry workers take advantage of their condition within the sector to obtain benefits and justify a claim from a known customer.

There is also the proven case that other companies have been involved in fraudulent activities against the insurer, such as clinics, mechanical workshops, among others, where they falsify invoices and reports.

Now we will share with you the most frequent types of fraud within the insurance sector to understand their nature:

1.Hiding information: many times it is sought to hide that an event has occurred due to the negligence of the insured or that the damages have been greater because the affected party did not comply with the security measures.

2. Giving erroneous information: complementing the previous case, in some frauds an attempt is made to distort the information of the incident that occurred, changing the moment in which it occurred, the location, cause and even people involved.

3. Simulation of an accident that does not happen: within this type we can get a false theft or an appliance that “has been damaged” but in reality if it works.3. Simulation of an accident that does not happen: within this type we can get a false theft or an appliance that “has been damaged” but in reality if it works.

4. Exaggerating the consequences of the claim: within this point we find claims related to health, since there are cases where the insured try to exaggerate their ailments and illnesses that they do not actually have.

5. Intentionally causing a claim: deliberately producing a claim is one of the most used techniques to try to defraud the insurer.

The prevention of fraud is an issue that directly affects the operation of claims, thus impacting the result of operations, that is why through LISA Claims insurance companies will be able to filter suspicious behavior through a fraud funnel and also have an early warning.

Do not hesitate to contact us and share this content among your acquaintances!


Why anticipate the needs of our policyholders?

As we mentioned in our article “These are the benefits of Personalized White Glove Service for Insurers”, if insurers consider the opportunity to offer personalized service, they can guarantee better products and services, evaluating the needs of each individual and know if they are repeated among the insured to be able to implement them even more quickly. The truth is that very few industries are offering this service because of the cost and because it requires changes in the organizational structure and investments in IT.

In this sense, based on how aware the insured is that there is a problem and the ability of the insurance company to respond to it proactively and effectively, customer needs can be categorized into three archetypes:

-Prevent problems: a proactive service can enhance the image of an insurance company in front of its policyholders by being able to prevent problems before they happen.

-Resolve problems before clients report them: busy clients perceive a “white glove” treatment when they know they have a problem but the company detects it and solves it before they raise it.

-Customize responses when customers are contacted: when the insured requests help, insurers can still offer an exemplary service by predicting their needs based on their individual profile to guarantee a personalized response.

Customers of any company increasingly expect them to work tirelessly in the background, anticipating problems before they occur, knowing when, where and how to establish contact and doing so proactively when necessary.

Establishing a guided customer service function with these characteristics requires a good understanding of organizational needs and tools that facilitate the collection, analysis and exchange of information.

Those insurance companies that dare to use innovative technologies will be able to set the pace to compete and grow away from their traditionality.

Customer satisfaction is one of the fundamental pillars for any company and ensuring it goes hand in hand with offering effective products and services with the help of technology.

Learn how to increase NPS up to 20% with LISA by clicking here


How can insurers stay in the Top of mind of their policyholders?

Do you think that combining human capital and technology would make possible a perfect formula to contribute to insurers? The truth is that not only is it enough to have modern systems, but true innovation starts from the union between technology and people.

We have already seen in other of our specialized articles, how technology contributes so much since its appearance, in fact one of the most prominent turning points was this year when Covid-19 appeared, which would cause the way many insurers operate be subjected to a new abrupt paradigm.

Currently and for several years, the requirements of customers to purchase insurance have been very changing, for this reason insurance companies have had to take a step back to reinvent themselves, seeing the mistakes made and thinking about how they can play an important future role in the lives of old and new customers to meet their needs.

So that the insurance industry can reach and stay in the “Top of mind” of its clients (it refers to the brand or product that first appears in the mind of the consumer when thinking about a specific industry), and be able to succeed in the future You will need to consider three important points, which Duck Creek Technologies revealed in one of their recent research: “How do you get a great product?”

1. Establish the basis for growth: insurance companies that are considered providers of stability, financial opportunities and security (especially with regard to emerging economies), should have a more established role in establishing trust and infrastructure for continued growth.

2. Eliminate immobility: having a security entity is something that provides tranquility and strength, especially when you have the idea of ​​growing more as a business. When insurers begin to define themselves as a network that offers security, they can help other companies to overcome immobility by acting as partners so that other industries can be ambitious and offer more innovative and customer-friendly products and services.

3. Play a more active role: Insurance companies have long been issuing silent contracts that only enter the game when a claim has occurred. In an increasingly updated and intelligent world, the insurance industry must play a more active role in maintaining the safety and well-being of its policyholders. If insurers can be proactive, they will not only reduce the pain of loss, but also promote safer and healthier societies.

An addition that you must take into consideration is that if the insurer wants to stay or reach the Top mind, it must know its audience, offer quality products and services, transmit credibility, be present on a daily basis.

There are many “lame legs” in insurance companies and they go hand in hand with the previous points, that is why implementing technology and real action plans is relevant and the best idea to get out of the comfort zone and be able to satisfy the needs demanded by our policyholders. Get to know LISA and find out how we offer value so that the insurance industry gets out of its traditionality.


Do you know how the NPS is related to the Churn of your portfolio?

At present, the insurance industry has a non-negligible number of customer absences, the percentage of escape will be intrinsically linked to the satisfaction of the insured at the time of having a claim.

In a general context, insurance companies constantly struggle with the retention of their clients, this is fundamental for the business since, from the renewal of their policyholders, new prices are set for the premiums of the new policyholders who will be captured the next year and how much it will impact sales efforts.

On the other hand, technology takes on a fundamental weight, making exit costs much lower for the insured. If 15 years ago we had to go to the branch to cancel our subscription and then take out another policy, today this can be done in a couple of clicks.

For this reason, it is very important to know what the insured’s impression is of the service provided, for that a very useful tool is the NPS (Net Promoter Score), a high number will indicate the client’s predisposition to recommend the company of safe and therefore to stay in it.

It is estimated that only for the Insurance industry the NPS is 36%, this gives us an indication that the churn of clients is not less. We know very well how to attract policyholders is a process that has been approached countless times, but how do we keep our clients?

  • Keeping our clients connected: One of the most important reasons why the insured-company relationship breaks down is the little communication that is perceived by the insured. A recurring phrase is “My company caught me in the sale and then I did not hear more about it, even when I requested its services I felt abandoned”.
  • Ensure an effective process: It is a fact of the cause that the industry has old and even primitive processes, to innovate means to break paradigms and for this to say “it has always been done that way”, is the first thing we must question.
  • Opening up to new actors: Mckinsey already mentioned it in 2019, “the insurance value chain is increasingly disaggregated”, and this is basically due to the fact that today many processes present in the company’s value chain are being inefficient.

However, today there is a rich ecosystem of actors who specialize in the links of the value chain. Why specialize in everything, if you can partner with the best actor to boost your operation?

It is not a secret at all that the insurance industry is extremely competitive, however the biggest challenge is not to generate a greater flow of sales year after year, but to retain the largest number of clients that helps make the portfolio profitable and thereby improve the reputation of the company through a satisfied customer.


Discover three trends in medicine in the wake of Covid-19

As we have already explained in many of our articles, the appearance of Covid-19 was the turning point for many sectors and businesses around the world to change their way of operating, where the majority moved towards digital transformation.

One of the areas that suffered the most changes as a result of the pandemic was medicine, since now its way of monitoring and caring for health is quite different from how it was a few months ago. In that same sense, it will continue to modify and transform once the pandemic has ceased.

Allianz partners, a leading global company in medical, road, home, life and travel assistance services, prepared the report “Life after Covid-19”, in which the analysis of the main trends and changes in the health sector after the Coronavirus, among which three significant changes within medicine stand out:

1. Use of technology: Coming from social distancing, many people have used the internet to have medical consultations from home (telemedicine), and it is expected that health service delivery systems will be increasingly digital and used. In addition, the technology revolutionized Artificial Intelligence (AI) and mobile applications to control and combat the expansion of Covid-19.

2. More investment and research in medicine: In order to find an early cure for the Coronavirus, governments around the world have helped promote epidemiological research, vaccines and preparedness for other types of diseases.

3. Prevention and care of mental health: One of the most outstanding effects during the pandemic has been related to mental health, since during the time of quarantine and the imminent confinement, many people have developed and increased diseases such as depression and anxiety. In this sense, it is important to reinforce and give more attention to this area.


Big Data: How you improve the capacity of the healthcare sector today?

Since its inception, technology has been one of the most important innovations to make people’s lives easier and more comfortable. The same happens within the health sector, since the study not only advances in medical treatments, but also new technologies play a fundamental role in achieving part of this continuous improvement.

An example of the above is how Big Data or data analysis is a fundamental foundation in recent research that has been carried out.

Alzheimer’s support

One of the fields where it has been working is in the early detection of Alzheimer’s and dementia, diseases that by 2050 will be affecting more than 150 million people around the world.

An example of this is the initiative proposed and launched by the European Union and the European Federation of Pharmaceutical Industry Associations (Efpia), through the IMI (Innovative Medicines Initiative) consortium. It is working on a system that seeks early diagnosis.

Mopead (Models of patient Engagement for Alzheimer’s Disease), has been designed by the GMV company to enhance citizen participation in early detection through a model in which an online questionnaire is filled out, where they participate in a medical examination and are subject to primary and tertiary care tests.

Likewise, researchers from the Universitat Politècnica de València (UPV) are working on the development of Artificial Intelligence (AI) libraries, which will aim to help the clinical diagnosis not only of Alzheimer’s but also of depression and some types of Cancer. This technology will be supported by Big data and supercomputing, which provides a great capacity for analyzing all types of information.

Big data against Coronavirus

As we have already mentioned, the massive analysis of data will be essential for the fight against various types of diseases, since the large amount of information becomes the key to better prevention. At the health level, work has been carried out to face a pandemic such as the Coronavirus.

In this context, the use that China made to contain the spread of the virus has become clear, even a Canadian startup, BlueDot, came to foresee the pandemic last December as a result of data collected and analyzed from social networks.

Currently, various projects are underway, such as geolocation-based tools, which will help control possible outbreaks of Covid-19 in hospitals. In Spain we find the case of Radar Covid, the most downloaded Coronavirus tracking tool.

There is no doubt that technology is not focused on a single place, but is present in various sectors in order to make its evolution easier through an infinity of tools.

At LISA we use technologies to provide the insurance industry with mechanisms to accelerate settlement processes, save on costs and prevent fraud. All this in order to guarantee a unique and innovative experience to maintain the satisfaction of the insured.

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