Whilst some sectors, such as retail, are leading the way when it comes to embracing new technologies, the insurance industry has been slow on the uptake – and customers are noticing. With 2020 just around the corner, what can the insurance sector do to embrace change?
Catering to the digital native
Digital natives can be described as anyone young enough to not remember a time before digital technology entered the mainstream. When it comes to insurance, these digitally savvy customers expect the same omnichannel retail experience that they have become accustomed to in other sectors. They want to be able to cherry-pick the policies they want, at the price they want, from the platform of their choice.
What’s more, the 9-5 business model just doesn’t stand to serve these new perpetually switched-on customers. They expect access to help whenever they want and are likely to interact only when they need to renew or make a claim.
With this in mind, the family-run, personable brand image is less likely to appeal to the digital native wanting immediacy and consistency far more than they want a personal touch. That’s not to say that these traditional values aren’t appreciated elsewhere, but when it comes to the digital native, it’s all about the ‘right here, right now’.
Slow on the uptake
Despite the increased pressure to digitise, the insurance industry is sluggish when it comes to embracing new technologies. Comparisons between other sectors are painting the insurance industry in a bad light. Lack of integration between touchpoints and lengthy form filling is making the customer process laborious and tedious when compared to other more agile sectors. But slowly but surely, the sector is beginning to take note and catch up.
So, what are some of the technologies that can be used to transform the insurance sector?
Customers are increasingly using social media to research insurance products and compare services. It can also provide a valuable resource to capture real-time data and to better understand the motives and needs of the customer.
Sensors can capture valuable data about client behaviours, such as the development of ‘pay as you go’ motor cover which matches the premium to the vehicle usage. This can be used to develop tailored policies to customers as it can judge how well the policyholder drives.
Analytics can aggregate the data gathered from the likes of social media, mobile and sensors to create a much more accurate customer profile. This offers huge opportunities for more personalised and risk profiling products.
Cloud gives insurers access to greater flexibility as well as opportunities to innovate and try out new services and solutions for customers.
Whilst it might not be the fastest industry when it comes to digital innovation, the insurance sector is beginning to catch up. In the next few years, we are likely to see a sharp increase in the advent of digital technology to provide greater customer profiling and to develop new and improved products.