Insurers have been put under increased pressure recently, fuelled by factors such as digital transformation, growing customer expectations and increasing regulation.
The digital evolution has had a positive effect on consumers, giving them more choice and flexibility. But overall success, it seems, still depends on an insurer’s ability to respond to shifting market dynamics. In its recent article ‘Time for insurance companies to face digital reality’, McKinsey outlines the expectations customers have when dealing with insurers; namely simplicity, 24-hour access across all channels, easily accessible information and innovative services suited to the digital age.
McKinsey goes further to explain its five pillars for successful digital transformation within the insurance industry:
Insurers must harness new technologies in order to stand out and integrate them within their services as a way of forming deeper connections with customers. This must cover the whole customer journey, from the purchasing of a policy through to the claims process. As McKinsey explains, winning organisations will have to do more than just follow trends – they will need to set them.
Customer loyalty is waning, making it vital for insurers to demonstrate empathy and form stronger relationships with their customers. Digital tools can support this process; by utilising natural language processing and artificial intelligence to assess digital interactions, insurers can offer more efficient, personalised services, driving loyalty in return.
Efficiency and Effectiveness
By digitising processes and moving to lower-cost platforms including web and chat, insurers can make interactions more efficient whilst improving the customer experience. Additionally, the data gained through digital CX offers unmatched insight into customer behaviour; this allows insurers to operate more effectively, while improving margins and their bottom line.
Digital channels allow organisations to scale up quickly, with network effects possibly channelling revenues into the hands of just a small group of organisations. So, insurers must focus on improving relationships with their customers in order to protect existing business, as well as to attract new customers.
Speed and Agility
Many insurers are held back by their existing technology and to stay ahead with new, innovative organisations entering the market, they must adopt a digital-first approach. This may require a complete overhaul of processes, which, while disruptive in the short term, is essential for success.
Neil Thomson, Strategic Sales Director at ICE InsureTech, explains how digital transformation should be considered an advantage as well as a challenge. “Digital will continue to disrupt business processes and increase competition in the market – but at the same time, it’s helping insurers to streamline methods, become more efficient and provide better experiences to their customers.
“Success going forward will require insurers to adopt a digital-first approach, putting the customer at the forefront of everything they do whilst utilising innovative tools and processes to help them to stand out from the crowd.”
How ICE InsureTech can help
At ICE, we provide integrated technologies that connect people, devices and systems within the insurance sector.
Our solutions deliver a fast return on investment, are easy to implement and can help you to meet the ever-increasing demands of today’s insurance customers.
For more information, contact ICE InsureTech
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