Often described as one of the oldest businesses in existence, Insurance industry is facing a new challenge – reimagining the customer journey for the digital native generation. The rapidly evolving generation has clear expectations from the brands they associate with.
The depth of their understanding is evident in the way they interact with the brands directly on social media platforms. In this ever transparent world, the consumers have many avenues to share feedback with companies for unsatisfactory service and products, which now lowers their goodwill.
Technology plays a pivotal role in how a business conducts itself today. That's especially the case in insurance where we don't sell a physical product that someone can touch and feel. But instead, insurance sells a promise that we will be there in times of need. And technology enables insurance carriers to carry out that promise, even to our new age customer, who is looking for a click and go solution.
Reimagining Customer Experience
The biggest challenge in delivering a customer-first experience is to find the right balance between developing customer intimacy and trust while being innovative and always figuring out solutions to drive -down or maintain the costs. Insurance carriers have to be agile enough to meet the fast-shifting market expectations and align themselves to the rapidly changing environment.
It is essential not to forget about the customer's journey through all aspects of the value chain. Customers now expect frictionless, connected services that are easy to interact with & experience. InsureTechs lead the way, rethinking, streamlining, and simplifying the entire customer experience to meet their expectations and build digitally superior journeys.
It requires a vigorous automation engine that not only streamlines but also gamifies the entire customer journey. It results in significant and continuous interactions with the customer, which will substantially boost brand dependability and differentiation, moving the needle on the carriers' most crucial business metrics: conversion, placement, persistency, lead generation, wallet share, and NPS.
Creating New Paradigms to Leapfrog into the Digital Age
It is essential for insurance carriers to relook at the digital interaction with customers that will bring them back to the table. Today's life insurers must deal with an incredibly daunting set of constantly changing business challenges and must meet all of them to thrive. Insurers must be capable of transforming operations, digitize the entire lifecycle of acquiring and servicing products, achieve unmatched speed to market, and drive policyholder engagement for exponential growth and reduced operational costs and risks in today's digital era.
The digital economy, emerging technologies, the shifting data paradigm, and insurance ecosystems' growth are transforming the way insurance business is conducted. And these trends are also providing advisors with numerous opportunities to expand their businesses, better serve their customers, and increase the level of engagement and grow relationships.
With the right strategy and interactive customer engagement solutions like Life.io, insurance companies can propel into the digital age, penetrate new markets through new distribution channels, and create innovative operating and engagement models.
InsureTechs can reduce the end-to-end purchasing process that takes days to minutes through digital intercessions. It is one of the main reasons top insurance brands have adopted digital solutions from leading InsureTech firms. It has innovatively enabled companies to transform their operations, exceed their customers' expectations, and reimagine the customer experience throughout their journey.
Future-Proof for Growth
Today, leading InsureTech companies are fuelling the future of global life and annuity insurance. There is a need for innovative solutions that help evaluate the effects of change in administrative regulations or new project implementation and plans that keep them compliant and transparent. These solutions should not only help in simplify complex environments, reduce costs, workforce dependency, improve fraud detection, but also explore the possibility of developing business without crossing the borders physically.
The critical first step for any carrier now is to build out a complete digital ecosystem for a promising future.
From generating instant policy approvals to creating reimagined end-to-end purchasing process in minutes rather than days or even hours, insurers can completely overhaul the way they operate and onboard customers. The critical success factors in any insurer's digital transformation are reimagining the life insurance purchasing process and adopting a customer-first product suite that meets customer needs and a supporting ecosystem that delivers a truly digital experience.
The union of technological competencies and demographic trends makes it the right time to develop new business models that appeal to all. A thorough review of customer-centric solutions powered by next-gen technologies will help insurance carriers future-proof their growth.
The author, Chirag Buch, is Managing Partner at SE2 India. The views expressed are personal