With the return of live events, there’s even more to do, less time to do it and fewer resources to make it all happen. Industries that have been historically resistant to change and digitalization (namely insurance and to a certain extent, live entertainment) have been forced to adapt and implement tools not only previously ignored, but seen as detrimental to their culture of doing business. As tech is becoming increasingly embedded into our lives, many leaders in both industries are recognizing the importance and value of incorporating a more modern approach to doing business. Enter relationships between insurers and tech companies.
In short, the insurance industry is embracing tech and evolving because of it. The next few years will see further change to the experience of purchasing, using and claiming on a policy, all of which will benefit the live events industry. Smart insurance products are already being developed for new and evolving threats, plus solutions to help customers better understand and manage their existing risks. We expect to see:
More transparent policies
Tailored and flexible coverage
Innovative (and proactive) risk solutions
Simplified processes and more digitalization
The role of data
Through the collection of all sorts of different types of data (be it prior events at a venue and historic weather at that location or the type of event and crowd behaviors), it’s possible to more accurately evaluate the level of risk for a given event. Not only does this mean better policy pricing, but being better informed about possible risk reduces the likelihood of being underinsured. Data can also provide the insights needed to sidestep obstacles that arise during the event lifecycle and may ultimately help avoid a cancellation.
Additionally, this data helps insurers better understand the types of risks that may present themselves in the future. Better detection of emerging risks, like climate change or epidemics, help reduce the threat they pose, as well as the havoc they cause.
Embedded insurance integrates the option to purchase coverage within an existing product or service, usually via a 3rd party (again, those relationships between insurers and tech companies). It’s centered around the idea that insurance should be bought, not sold. Acquiring insurance becomes a part of the overall journey rather than a completely separate activity.
Insurance as a service takes embedded insurance to the next level. From digitizing a single process to a completely digital, end-to-end solution, there are a few different models emerging within the industry, but it’s all about integrating the insurance experience into your existing day-to-day processes.
Traditional insurance isn’t leveraged until something has already gone wrong and it’s time to initiate a claim, but insurance as a service means developing models using analytics to proactively detect risks. Real time data about emerging risks, combined with intelligent insights, provides the insured with an opportunity to proactively manage those risks and may even result in the prevention of a claim.
All of these things contribute to closing the protection gap that exists between what people need and what’s actually available. New risks emerge every day, and it’s tricky for insurance companies to keep up with the cover that customers need. Partnerships between insurers and tech companies utilize data to mitigate risks and make obtaining coverage quicker, easier and less costly, reducing the likelihood of not being covered.
eve provides event industry professionals with a modern approach to event management and insurance. The software simplifies and automates event planning & management workflows through issue tracking & resolution, risk alerts & mitigation support and staff management & communication. With event cancellation insurance embedded within the platform, the entire insurance experience from the application to policy administration has become fully digital.
eve is an Entertainment partner of Allianz Global Corporate & Specialty.
Allianz Global Corporate &Specialty’s (AGCS) Entertainment insurance team is a well-established market leader with a strong history in Entertainment insurance spanning over the last 100 years. Our team is made up of more than 60 specialist entertainment underwriters, claims adjusters, safety experts and auditors dedicated to this specialty insurance business. And with centers of expertise in the US and UK supported by regional hubs in Asia, the Mediterranean and South America, Allianz is in the best position to help our clients with their global entertainment insurance needs wherever that may take them.