Is Technology Nowadays Driving The Evolution Of The Insurance Industry?
As digital disruption continues to change the game in the insurance industry, insurers are revising their business models in order to stay relevant to consumers.
And mass customization is just one way to achieve the desired outcome.
While this might sound like a paradox at first, mass customization can drive customer loyalty by identifying different customer profiles. Then it can be used in developing or enhancing products to meet their specific needs.
An Accenture survey for the short-term insurance industry revealed that customers want to interact via various channels, with younger consumers showing a preference for digital channels while older consumers prefer a phone call and middle-aged consumers opt for a combination of the two.
The needs for interaction with insurers is often product driven.
These touchpoints include retail shops, websites, mobile applications, offices of intermediaries and partners, chatbots, social media such as Facebook, and telephonic calls. Medical products, for example, see more frequent interaction between clients and the business as the client changes or adjusts their medical insurance options depending on their family’s needs.
When it comes to life insurance, on the other hand, we often have less frequent interaction with the clients — from the point of policy inception and most often, this is followed by a claim or when the client makes a change to the policy such as changing beneficiaries or adjusting the life assured sum.
In another survey, The PricewaterhouseCoopers (PwC) Insurance Survey of 2018 notes that a new generation of consumers is emerging. The report says that the “digital native” is looking for mobile access, omnichannel access, speed, paperless transactions, transparency, and remote advice.
“Insurers now have to anticipate changing customers’ needs, providing more customized solutions,” the report states. In this statement, it believes in driving digital touchpoints together with its intermediaries can create a much better service or satisfaction to consumers.
However, do note that as technology continues to evolve at a lightning pace, insurers need to ensure that both the partners and architecture they select to engage with are advanced enough to take the company into the future.
If companies don’t select the right designs to provide flexibility and integration possibilities, your investment may fail to provide the desired return on investment (ROI).
It is important and worth taking time to evaluate industry changes without buying into media hype.
For example, a few years ago, we saw the introduction of increased technology and there were a number of claims that tech was about to replace brokers. However, in the field, we have seen that technological engagement with consumers has seen a better take-up when driven by brokers and intermediaries.
On a final note, while technology has definitely changed the game for insurers, most clients still want and need the personal touchpoints and it is only by marrying the two that insurers will achieve the optimum client engagement that they are seeking.