Need for People in Personal Lines “going Away”?

Discussion in 'P&C Insurance Forum' started by Brian Anderson, Jan 22, 2016.

  1. Brian Anderson
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    Brian Anderson Moderator Moderator

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    Here’s a direct quote about rapid changes impacting those employed by P&C insurers from McKinsey & Company Director Michael Pritula, speaking as part of a panel discussion at the 20th annual Property/Casualty Insurance Joint Industry Forum in NYC on Jan. 12:

    “The need for people in the personal lines business is going away.”

    Pritula cited the growing use of digitization and advanced analytics among U.S. auto and home insurers. He also said he thought the size of commercial lines insurers’ payrolls would change more slowly because assessing commercial risks, such as cyber liability, pose a more daunting challenge to insurers and will require additional manpower.

    At least he didn’t say the need for personal lines agents is going away, even with the coming wave of driverless cars that could potentially shift the burden for auto insurance to the manufacturer.

    U.S. Insurers Adapting to Swift Technological Advances, Say Industry Forum Panelists | III
     
  2. agentinsouth
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    agentinsouth Well-Known Member

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    This is old news and outdated.... We have all but lost most of the auto insurance market, but ironically we still sell a lot of it. Companies have tried several times to automate home insurance. However, they have failed due to crazy loss ratios of not having a human work the policy. Also, there are more & more areas where the top 7 are NOT willing to write home insurance policies, resulting in the need for IA's. Lastly, they will never automate flood insurance in AE & V zones.
     
  3. insurance1822
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    insurance1822 Well-Known Member

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    ^ Yeah in our current generation. Give it 10 years. McKinsey is arguably the most sophisticated consultant in the insurance world, I'm pretty sure they have better data & predictive capabilities then any of us. When they talk, we should listen.
     
  4. agentinsouth
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    agentinsouth Well-Known Member

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    They have been preaching this for years & am tired of the doom & Gloom ...

    You might see it for regions where nothing happens (like Austin or AZ.), not happening anywhere near I-10 & other major weather loss prone areas. Houston is a great example. My Houston friends are loving it, huge $$$ because no one wants to write below I-10.
     
  5. DJAJ
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    DJAJ Well-Known Member

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    Why is everyone in such a hurry to get rid of humans? I could care less about self driving cars and im 34. Does not excite me at all. These companies keep trying to take away jobs form us, its sad. Whats even sadder is that everyone is all for it. Whats wrong with humans helping other humans insure their stuff? Just leave us alone.
     
  6. Gulfman
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    Gulfman Well-Known Member

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    I'm assuming an I-10 is a Weather Zone?
     
  7. insurance1822
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    insurance1822 Well-Known Member

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    I would NEVER trust a driverless car
     
  8. BlockO
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    BlockO Well-Known Member

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    Driverless cars are still a LONG way into the future.

    It will be at least a decade more of tweaking to do before they could put this out to the public. and even then, the majority of the public won't be able to afford them.

    It will be at least 2030, and probably more like 2035-2040 before this will ever be an issue for an auto insurance agent.
     
  9. dean8287
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    dean8287 Well-Known Member

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    I can see how they will drive in normal conditions, but my concern is how they are going to navigate in ice, snow, heavy rain etc. I think this is something everyone is forgetting about.
     
  10. insurance1822
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    insurance1822 Well-Known Member

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    Lets say a driverless car is headed down the street & 2 moron kids fly out on their bikes. The car is carrying 6 passengers & there's oncoming traffic. The computer must calculate whether to hit the kids, or swerve & go into oncoming traffic.

    If it decides to swerve into traffic, it just 'chose' to hit the other car head on. What it calculated it was safest & least dangerous to overall human life to hit the kids instead of oncoming traffic which could cause a pileup. Imagine that lawsuit...

    "So ladies & gentleman of the jury, Ford Motors made the decision that it was safer to hit & kill these 2 kids instead of turning into oncoming traffic...."

    not like it's a person who reacted with no time to think. This would be a computer who thought it through.
     
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