How to navigate changing customer expectations by accelerating digital transformation

Dawid Glawdzin, director of partnership development at Future Processing.

Whilst digital innovation has become the norm for many industries across the world, the insurance sector has been slow to shift to digital. Changing consumer expectations are now setting the pace, with demands for seamless, fast and easy digital experiences coming to the fore. Whilst we are already seeing the front-end benefits, digital innovation is becoming crucial to businesses to acquire new customers, retain existing policymakers, enter new markets and launch new products, all at a lower cost for the customer.  

From automated quoting and claims management to data analysis, AI, and machine learning, several technological advancements are poised to further accelerate the insurance industry. Now is the time for insurers to gain a better understanding of how to meet the increasing demand for digital and ensure their organisation is positioned to unlock the potential, and ultimately provide a more customer-centric approach. 

Customer expectations shaping insurance models 

Leveraging technology is about more than just delivering an incremental improvement when selling insurance, but instead, helping customers choose the insurance package that is best suited to them. To meet these changing customer demands, insurers will need to consider restructuring their business models to ensure they provide more value in the longer term – which is where embedded insurance can come into play.  

Embedded insurance is a type of insurance that is integrated into products or services and offered to customers as part of their initial purchase. By bundling insurance together, businesses can offer additional value-added services, whilst saving the customer time and effort when looking for the right type of coverage.  

This shift is helping to create a more competitive landscape as insurance companies are competing to provide the best customer experience. By responding quickly and effectively to their needs, insurers can gain a competitive edge and position themselves for long-term success.  

With that in mind, insurers can utilise new digital platforms that will help them reach a larger customer base than ever before, and ensure customers have the availability to access insurance products quickly and easily, without having to visit a broker. New customer touchpoints will also emerge, meaning new data can be collected for personalisation, which ensures that affordable, relevant and customised insurance is offered to customers when they need it the most.  

Increasing demand for personalisation 

Like so many other products or services, there is a rising demand for personalised insurance solutions. Customers now expect coverage that aligns with their needs and can be adaptable when these needs inevitably change. As a result, insurers must begin offering relevant and customised engagement to customers throughout their lifecycle. Powered by advanced technology such as data analytics, AI and automation, insurers can gain a deeper understanding of their customers and provide a targeted customer experience. For instance, a customer can choose to interact with an agent who can use the gathered information to offer tailored recommendations or services, or alternatively communicate and receive advice from an automated chatbot that is available 24/7.  

To take this to the next level, open insurance can enable valuable customer information to be shared across the industry. This is made possible by granting customers access to their insurance data and allowing them to make informed decisions about their selected insurance services. Real-time access to their policy information empowers customers to better manage their coverage and seek better services or rates.  

Furthermore, the demand for personalised services has led to the development of new products and services that go beyond traditional coverage, such as usage-based insurance, micro insurance policies or on-demand coverage. This can only be achieved with the introduction of APIs, Cloud and big data. Using these technologies, insurers can identify what customers need and offer product recommendations, as well as customised chatbots that provide tailored guidance and support to customers throughout the policy lifecycle. Not only does this offer significant value to the customer, but it also positions the insurer as a trusted advisor.  

Looking to the future 

Whilst technology has helped accelerate processes much faster than ever before, increasing expectations from customers are pushing insurers to innovate at speed to remain competitive. By focusing on providing value-added services and leveraging data analytics to create a more personalised experience, insurers can stay ahead of the curve, whilst keeping costs down for their customers. 

With customer expectations continuing to shape the future of insurance, businesses need to be prepared to adapt and stay abreast of technological advancements as these tools will help them create a successful customer-centric approach.  

Image: Dawid Glawdzin, Director of Partnership Development at Future Processing.

Guest Post This post was created just for Claims Media by a guest contributor.