Misconceptions about digital loss control are still holding carriers back—and it’s costing them.
Insurance carriers that embrace digital loss control aren’t just upgrading technology; they’re unlocking operational improvements and dismantling outdated assumptions.
While some worry about cost or disruption, real-world results tell a different story: digital loss control reduces overhead, boosts customer retention, and streamlines claims—making it not only practical, but essential.
This blog tackles the top myths holding insurers back and explains why now is the time to act before competitors leave you behind.
Myth 1: Digital Loss Control is Too Expensive
A common misconception is that cloud-based loss control solutions require a large, upfront capital investment that may not deliver returns. In reality, carriers implementing these systems are seeing significant efficiency gains that more than justify the cost.
For example, Society Insurance, delivering commercial insurance across nine states, reports Duck Creek Loss Control saved each field consultant about 45 minutes per inspection, amounting to more than 2,250 hours saved annually.
These savings, combined with a documented 20 percent reduction in claims frequency and an 18 percent improvement in policyholder retention, make it clear: digital loss control isn’t a cost burden—it’s a cost advantage.
Myth 2: Digital Loss Control Gains are Minimal
Some still view P&C (and general insurance) loss control as a back-office function with little strategic impact. The reality? Modern digital tools are transforming core business outcomes. Carriers adopting digital loss control report measurable reductions in loss frequency and improved underwriting decisions. Policyholder retention also improves because customers feel more supported and less exposed to risk.
Implementing loss control surveys helped Society Insurance gauge satisfaction, helped improve customer response rates from 10% to 33%, and boost overall service levels. Society’s administrative staff saved 280 hours preparing reports, delivering a 230% return on investment in the first year.
The stakes are high: Accenture warns that poor claims experiences could put $170 billion in global premiums at risk by 2027. Their advice is clear: invest in digital transformation, including digitized claims and loss control tools, or risk losing market share to competitors who already have. (Poor claims experiences could put up to $170B of global insurance premiums at risk by 2027, June 2022)
Myth 3: Digital Loss Control Diminishes the Role of Field Consultants
Imagine this: You’ve just reported a potential risk at your business. Instead of waiting days for someone to schedule a visit, you get an instant response. Your consultant reviews digital photos, runs risk analysis, and calls you the same afternoon with actionable advice. Digital tools don’t replace the conversation; they make it happen faster, with more insight and less hassle.
Digital tools also enhance human connection by offloading low-value tasks so people can use their time more effectively, such as focusing on deeper, strategic client conversations. (Everest Group. Digital Underwriting: How to Drive Intelligence and Speed Across the Underwriting Life Cycle. 2022)
Digital loss control allows consultants to use time more effectively. Whether conducting remote assessments, using AI-generated risk insights, or giving tailored advice backed by real-time analytics, digital tools empower consultants to spend less time on paperwork and more time building meaningful client relationships. The result? Stronger, more engaged and responsive relationships with the policyholder, not less.
The Real Benefits of Digital Loss Control Are No Myth
Digital loss control is no longer a future-facing innovation: it’s a strategic imperative. Carriers adopting these solutions are seeing time savings of up to 60%, reduced claim volumes, and measurable gains in client retention. Bottom line: carriers that embrace digital loss control are pulling ahead of the competition.
These digital loss control platforms don’t just meet compliance requirements; they drive profitability, productivity, and stronger client relationships. Real-world results include double-digit reductions in claims frequency and significant improvements in retention.
Insurtech for underwriting, or digital loss control isn’t optional anymore—it’s central to how modern insurers protect their books and grow profitably.
Ready to turn insight into action?
You’ve seen the potential of digital loss control—now discover how to make it a reality. Dive into our next blog for your blueprint to success, where we break down the strategies and technologies that transform loss control into a true competitive advantage, delivering measurable ROI and long-term customer loyalty.
