The Future of Insurance

With prolonged coronavirus lockdowns in 2020, digital adoption is no longer just a fad or just for a certain demographic.  While in 2018, more millenials were online than the older generation, in 2020 the GenX will have caught up finally. The percentage of millenials changed from just 54 to 62, whereas the GenX or the older community grew from 30 to 64 [This data is based on a survey done of customers frequently doing  transactions online or via mobile apps- between 2018 and 2020.]

Digital transformation – The Future

Times have changed to a point where today customers do not wait for the insurer to come back with information or clarification.  Information is available freely across the Internet, and there are several studies/research documents as well. Similarly. Customers no longer feel obligated or bound to make purchases from companies that are in their demography. 

There are new channels and platforms available today that influence decisions, not to forget the reviews and ratings. The two main parameters that influence the decisions in purchasing insurance are,

• Social media behavior: How the policyholders interact with their family, friends, and colleagues for advice on insurance. 
• Online Shopping preferences: Policyholders who want to be at ease and are constantly monitoring the market for any new offerings.

Customer’s call the shots in the future 

Today the policyholders are looking for a hyper-personalized, convenient and experience-led engagement. They want the insurers to deliver exactly the way they want. Insurers must prioritize the below to effectively engage with today’s policyholders. A successful experience-led engagement strategy offers:

• Products that suit evolving customer needs and preferences across the lifecycle
• Outreach to customers during the times they are likely to perceive insurance coverage to be the most valuable
• Interaction via the channels that customers prefer and access the most

When talking about whether the insurers are delivering what the policyholders want, there are said to be three major factors that influence the purchase decisions of the policyholders – the right time, right product and right channel.

Current customer behavior like social media behavior and research based information has improved the influences on their channel of preference.  Similar to travel services, where constant travellers commonly visit an aggregator site to collect the best info, policy buyers are taking advantage of websites that compare insurance policies and provide more information to influence purchase decisions. 

Less than 30% of insurers said they believe their websites are useful for sharing policy information with customers. Similarly, less than 30% of insurers consider online channels – website and mobile apps – to be effective sales drivers, while more than 60% said agent/broker channels sell policies. Seamless omnichannel delivery is essential because as many as 75% of surveyed customers say they would switch if seamless policy servicing options were not available across all channels.  

Real-time data and the future

The current trend is all about how the real-time data that needs to be super charged to fuel insurer lift-off. Advanced data handling boosts efficiency through the following ways, 

• Capturing previously unavailable real-time data sources from IoT and natural language processing-based support systems [including Chatbots]
• Intelligent process automation and automated processes that enable proficient internal data transfer and external sharing with ecosystem partners. 
• Techniques such as predictive analytics boost data processing, performance management dashboards, and sales/renewals forecasting.
• Help harmonize customer data across business units and subsidiary firms to create a 360-view of policyholders, which can bolster upselling and cross-selling. 

Real time data gives valuable details to help insurers get insight into the preferences of the policyholders which can lead to the next level of engagement. As per the data, the insurers can constantly improve on their portfolios and keep an eye on products that their customer might need. With this data, it would be easier to map the policy buyer’s journey and would help with more offerings and promotions. 

Today’s competitive and fast-changing environment, which has been inexorably altered by the COVID-19 pandemic, has abruptly eliminated the luxury of drawn-out decision making. While it might seem daunting, the path ahead into the future is not as rough as one would think. The companies need to be ready to take risks, adapt new technologies and look at closing any gaps they might have overseen. 

Do you agree with what is shared in this post about what lies ahead? Where do you think the Insurance industry is headed? Since Neutrinos is thinking ahead with reference to Digital insurance sales, we would love to hear from you on your plans and any support you need. Reach out to us now!

Content Source:  World Insurance Report 2020 by Capgemini Research Institute & Efma