Tomorrow.io > Case Studies > Proactive Weather Alerts: A Game Changer for Insurance Companies

Proactive Weather Alerts: A Game Changer for Insurance Companies

Technology Category

Robots - Autonomous Guided Vehicles (AGV)
Sensors - Autonomous Driving Sensors

Applicable Industries

Buildings
Finance & Insurance

Use Cases

Structural Health Monitoring
Usage-Based Insurance

About The Customer

The customers in this case are the policyholders of insurance companies. They are individuals or entities that have taken out insurance policies to protect their properties, such as homes and vehicles. These customers are often reactive, only interacting with their insurance companies when they need to make a claim due to property damage. They are concerned about the safety of their properties, especially during damaging weather events. They value proactive communication from their insurance companies, especially alerts that can help them take preventative measures to avoid property damage. In fact, 90% of customers surveyed found value in weather alerts from their insurance companies.

The Challenge

Insurance companies often face the challenge of dealing with a high number of claims, especially during damaging weather events. These claims can cost millions of dollars and can negatively impact the customer experience. Customers usually interact with their insurance companies only during the claims process when their property has been damaged. This reactive approach to customer service can lead to dissatisfaction and a lack of engagement. Furthermore, insurance companies are particularly concerned about weather events that cause property damage, such as hurricanes, floods, and windstorms. These events can lead to a surge in claims, putting a strain on resources and potentially impacting the company's bottom line.

The Solution

The solution lies in the use of proactive weather alerts powered by weather intelligence technology. This technology allows insurance companies to monitor specific locations where their customers live and send alerts directly to policyholders if a potentially damaging weather event is imminent. These alerts can be sent through an app or via email and can advise policyholders to take preventative measures. For instance, in the event of an impending hailstorm, policyholders can be advised to move their cars indoors. Similarly, alerts can be sent out for high winds and wildfires, allowing customers to secure their property and create safe zones. This proactive approach not only prevents property damage but also enhances the customer experience. Additionally, weather intelligence can identify potential risks for policyholders, providing opportunities for upselling, such as offering increased coverage for customers living in high-risk areas.

Operational Impact

The use of proactive weather alerts has led to significant operational benefits for insurance companies. Firstly, it has reduced the number of claims, thereby saving resources and reducing operational costs. Secondly, it has enhanced the customer experience by shifting from a reactive to a proactive approach. Customers appreciate being informed about potential risks and being able to take preventative measures to protect their properties. This has led to increased customer satisfaction and retention, which are key to long-term success in the insurance industry. Furthermore, the use of weather intelligence has opened up opportunities for upselling, allowing insurance companies to offer increased coverage to customers living in high-risk areas. This not only increases revenue but also provides additional protection for customers.

Quantitative Benefit

Proactive weather alerts saved an average of $3,000 per hail claim.
The use of weather alerts can lead to millions of dollars in savings each year.
90% of customers surveyed found value in weather alerts from their insurance companies.