For several years, the insurance industry has been in the midst of a digital transformation that has slowly developed towards a more complete digital experience.
What are the big problems and what are the new trends in customer relations? How can new technologies redesign the tools available to members, but also how can hyper-personalized customer journeys improve sales funnel performance or even member retention? For several years, the insurance industry has been in the midst of a digital transformation that has slowly developed towards a more complete digital experience.
An insurance sector still in the early stages of digitization
Global digitization and the pandemic have deeply affected the insurance industry due to changes in customer behavior. In this context, it has become essential to take advantage of the opportunities of digital technologies and develop appropriate contextual ecosystem strategies (integrated insurance) that will give insurance companies greater influence in the daily lives of customers.
Although the insurance industry has responded by developing and offering some specific insurance products, it still lags behind in providing these products to customers with the convenience and ease that new technologies can provide.
Insurers must solve this problem by creating a unified system that considers customer-facing channels as well as employee-facing channels to deliver holistic experiences. This is important not only for onboarding tasks, such as getting advice or an offer for new cover, but also for the ongoing engagement and management of existing insurances.
Although “personalization in insurance” has been a buzzword for some time, traditional insurers are still taking the time to offer personalized treatments to their customers. For it to work, they need to transform themselves digitally, and it takes time to get the right infrastructure, processes and structural changes in place.
Digital development is not only about the customer. All participants in the insurance process, from brokers to back-office employees, can benefit from an efficient, secure and reliable user interface.
Completely democratize data and reduce risk
As the focus shifts to the market for digital solutions, insurance products and services must be able to reflect the changing consumer behavior that drives a large part of the customer journey. This means insurers need data, technology, tools and partners to deliver targeted engagements.
In this burgeoning data-rich world, insurers need to collect vast amounts of data to optimize performance, mitigate risk and meet rising consumer expectations. For ages, insurance companies have collected vast amounts of data, but face challenges that prevent them from making the most of the power that analytical strategy and data management frameworks offer.
In addition, insurance companies have huge data warehouses and various teams that perform analytical functions. Information sharing and communication between them is often lacking, while each one has its own data recovery methods. What is the result of this?
Each insurance company product has its own process for collecting, handling and using customer data. Since the data comes from different systems, the information can quickly become outdated because it is very difficult to share. Thus, fragmented data with an inaccessible traditional system prevents insurers from extracting value and fully exploiting the data.
For data to become a source of knowledge and support decision making across all business units, from underwriting to marketing and pricing to policy servicing, it must become viable to be used effectively. Thus, to be competitive in today’s rapidly changing economic conditions, it is important to have accurate, real-time shared data for all key decision makers and all stakeholders at large.