About the Speaker Zander Galloway
Zander Galloway excel in crafting insurance and risk management programs tailored for middle-market companies. With a proactive approach, Zander deeply understand each business and the unique risks they face. This initial step is crucial for Zander to strategize long-term solutions that eliminate, reduce, and finance these risks. Zander Galloway's firm is not just limited to this; Zander also assist businesses with Employee Benefits and offer families vital services in Property/Casualty and Estate Planning. In essence, his firm aims to minimize risks for his clients and stand as a strong advocate during claims processes.
Takeaways from the episode
How Insurance Carriers and Insurance Brokers look at your Data?
- Insurance carriers often use the "law of large numbers" to make assumptions about you, categorizing you as average unless there's data to prove otherwise. This can be problematic when shopping for insurance, as lack of specific data may lead carriers to assume the worst about you.
Relevant Statistics: According to a J.D. Power study, 74% of insurance customers want personalized services but only 47% think they actually receive it. - When it comes to commercial auto insurance, carriers typically price the insurance based on the vehicle and not the driver. They manage risks by vetting drivers through Motor Vehicle Records (MVRs), which may only provide a snapshot rather than a complete picture of a driver's behavior.
Relevant Statistics: Studies show that over 90% of car accidents are caused by human error, yet the current insurance model focuses on the vehicle instead of the driver. - The reliance on MVRs or incidents on record can be misleading and not truly indicative of a driver's overall performance or risk level. It's like judging a person's behavior based on a few instances rather than the aggregate of their actions.
Relevant Statistics: According to the FMCSA, only 3-5% of drivers will have a moving violation appear on their MVR in a given year, demonstrating the limitation of MVRs in evaluating driver behavior. - Insurers could benefit from a more granular approach using real-time data to make better underwriting decisions. The current system is often akin to using a "blunt object" when a "scalpel" would be more effective.
Relevant Statistics: A Deloitte report suggests that 79% of insurance executives believe that AI and data analytics will revolutionize underwriting within the next five years. - It's not about finding the cheapest rate but rather about finding the carrier that understands your specific story the best. Businesses can better position themselves by sharing real-time data, their vetting process for drivers, vehicle maintenance policies, and demonstrating continuous improvement.
Relevant Statistics: According to a survey by EY, 40% of insureds would be willing to share additional personal information for personalized services, indicating a willingness to engage in more data-driven insurance relationships.