The insurance industry is on the cusp of a digital revolution. Unlike traditional insurers, digital insurers are leveraging technology to offer a better customer experience, greater transparency and faster claims processing.
Digital insurers are the frontrunners of the future and are quickly gaining market share. What sets digital insurers apart is their use of cutting-edge technologies like artificial intelligence (AI), big data and the Internet of Things (IoT). These technologies are helping digital insurers to better understand their customers and offer them tailored products and services.
Being a Front Runner
Digital insurers of the future will be multi-faceted, combining multiple digital insurance and financial services across various markets to offer a seamless experience to customers and partners. The goal of digital insurers is to provide better services, while also reducing cost. This can be achieved by offering more than one type of product at once–for example, from a single app or website you can buy home insurance, life insurance, auto insurance and other types of protection such as travel medical coverage or pet health care plans .
Seamless Digital Experience
By offering a seamless digital experience, market leaders will be able to generate value at each touchpoint of the customer journey. Customers can get a quote, buy insurance, and pay for it all through one app. They’ll see their current insurance coverage, add new policies and adjust their coverage through one app. This approach has the potential to transform how insurance is bought and sold and could give market leaders a significant advantage over their competitors.
Ease of Integration
Digital insurers will not only acquire new customers but also increase their value by creating integrated experiences with all their touchpoints through an orchestrated combination of communication, products and services. A customer experience strategy that includes digital insurers is essential if you want to gain market share in this industry.
The key to success for a digital insurer is its ability to integrate seamlessly with other touchpoints such as self-insurance platforms (SPEs), third-party brokers and agents or even reinsurers themselves. This integration should be done in order for your brand story to be told across all channels of distribution: website/app; social media channels like Facebook or Twitter etc.; offline marketing activities such as direct mail campaigns etc.; direct sales agents who have knowledge about your product range.
Being Data Driven
Better customer data and analytics will provide insurance companies with a better understanding of customer needs and behaviour, customer value, customer journey, net promoter score/satisfaction indicators, and better targeted pricing, acquisition, cross-sell, and retention actions. Data in the operations domain of insurers can benefit actuarial models, insights into the claims handling process, and fraud detection and prevention of claims.
Since customers go through the entire process of purchasing insurance directly with the insurance company, any mis-selling by insurance agents or brokers is eliminated. Customers can compare several insurance companies and their products before deciding on the best insurance coverage.
To summarise, Insurers must engage with customers in ways that they respond to, provide them with relevant, up-to-date information, and demonstrate that they care about their customers and society. In the rush to digitise and implement new technologies, insurers must also embrace their ability to personalise customer service. Insurance companies can use digital ecosystems and platforms to go beyond the digital bandwagon and gain a better digital presence.