Hiscox turns to social media to address underinsurance

Specialist insurer to link up with technology start-up to boost small firms

Hiscox turns to social media to address underinsurance

Insurance News

By Terry Gangcuangco

Specialist insurer Hiscox and technology start-up Digital Fineprint have teamed up to look into how small businesses’s social media data could help in understanding specific risks and the appropriate covers for the underinsured sector.

With many small firms operating either without any cover or with unsuitable policies, they become vulnerable to risks and costs – not to mention confused as to what and how much of it they need in particular. Hiscox said there is no one-size-fits-all approach.

Digital Fineprint’s social media analytics expertise will complement the insurer’s personalised service provided to small businesses, with the two organisations coming up with a tool to turn the data into insights as to what covers would be relevant.

“Many of our customers are one-man bands and micro businesses who are busy driving their companies forwards without the time to fully understand their insurance needs,” said Steven Wilkins, head of underwriting insight at Hiscox.

He continued: “We’re excited to investigate the role that social media could play in providing a more personalised service to these customers and help them make a more informed decision.”

According to the Hiscox’s “DNA of an Entrepreneur Report 2016,” 18% of respondents had no cover at all against a list of 11 common types of insurance. Meanwhile, 36% of small business owners and managers said they see no barrier to using social media in their business.

Erik Abrahamsson, Digital Fineprint chief executive, commented: “Hiscox’s collaborative approach to innovation provides the perfect environment for us to develop our solution in partnership with one of the leading SME insurers in the market, and we are looking forward to helping UK SMEs ensure they are adequately covered.”

Hiscox will fund the project, as well as dedicate a team of underwriters to work closely with Digital Fineprint.

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