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What COVID-19 is teaching the insurance world

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How technology will transform life insurance

 

3 min read

Do you know what the UK insurance industry is going through?

A disruption that calls for complete metamorphosis. Not so different from what the whole world is going through at the moment.

Crafting one-size-fits-all products and expecting them to sell like hotcakes is a huge misconception. Customers want products to be as personalised as possible. Pay per mile insurance or lower car insurance premiums for safe drivers are some examples.

In the current global crisis, personalised life insurance would look like factoring in the unique health/ living conditions of the person and then providing insurance options.

While already an unsaid expectation, this level of personalisation and care will become the norm in the future. Any business that is not able to meet these standards won’t survive long. Shockingly, less than 25% of insurers feel well prepared for this future.

So, how do businesses prepare while shifting gears in the present? Technology can be a tool that achieves both scalability and sustainability.

 

WHY technology is the future

 

The need for personalisation

80% of insurance customers are looking for personalisation. They want it to seep into the offers, the pricing, the messages, and the recommendations that insurance companies come up with.

Over the past few years, customers have already become acquainted with and habituated to personalisation through online retailers like Amazon. One doesn’t set out to buy insurance daily, but when they do, their previous shopping experience does influence their insurance purchasing experience.

Using technology to analyse collected data can help to craft personalised experiences. These can show up in the form of personalised FAQs, a personalised insurance policy that can later be expanded, or the next suggested policy depending on previous ones purchased. For example- a person who exercises regularly and controls their diet can be eligible for lower premiums.

 

The need for a multichannel digital experience

About one-third of surveyed insurers reported that over half of their insurance policies currently sold online. Over half of the insurers further believed that they would eventually sell over 50% of their insurance online.

This calls for a new working model that provides end-to-end services and is seamless in its delivery.

Underwriting and claims will need to be automated. Artificial intelligence, analytics, and automation will help to curate this seamless experience.

Safety and security of data is another aspect that insurers will need to pay special attention to. Compliance with GDPR and other legalities will have to be clearly communicated at the onset so customers can trust the integrity of the company.

 

How this future will play out

Many insurers are already aware that past systems and offers don’t sit well in present times. Traditional processes are unable to meet the demands of the current market. In the future, they might as well become extinct. The current global crisis has made this even more apparent. But insurers are also starting to make shifts.

The starting step is to bring in digital solutions that serve existing customers, prepares for new ones, and do not undergo a pricey and lengthy system replacement. The automated aspects of such solutions will help to power underwriting and file claims quickly and easily. The analytics derived from the use of these solutions will help to generate insights and create personalised policies and offers for individual customer needs. Systems will also need to store and process large amounts of data.

The primary curve to stay ahead of is your own; other companies are secondary to that. So, it’s time to level up from who you’ve been in the past. The differentiating factor that can help you on the way? The power of data to analyse customer behavior and provide a level of personalisation that transcends their expectation. Spixii can help you do this and become the go-to for insurance needs in your niche. Find out about our solutions here and have a conversation with the infobot.

 

Source

The SPIXII Marketing Team
ABOUT THE AUTHOR | The SPIXII Marketing Team
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