Insurers’ Flawed Understanding of ROI

The industry’s traditional assessments of ‘returns’ are not suited to the insurance company of the future.

Insurers often don’t fully load their costs, so they miscalculate the "I" (investment) in ROI.

Companies also need to take a sophisticated look at all their potential returns: on the loss ratio, on retention, on sales and marketing, on the expense ratio, on ratings and on any costs that a new initiative will replace.

Rightly, most carriers seek to understand the potential return on investment (ROI), or the cost-benefit, of new technologies such as our platform, prior to signing contracts and implementing. This is where conversations can get really exciting.