The insurance industry is facing a period of unprecedented change when it comes to customer expectations, technological advances and new business models. Adam Goran, client partner at global professional services consultancy Emergn, argues that these changes bring new opportunities to deliver more value to customers quickly, while also improving operational efficiency and profitability
1. Provide customer-centric products
Customer expectations are evolving and the need to be more customer-centric is higher than ever.
Insurers need to provide relevant and meaningful products that are intuitive, easy to use and exemplify the self-service models that customers demand and expect.
Insurers should consider innovative pricing models that they can implement to retain customer loyalty, whilst remaining compliant with evolving regulations. In the UK, for instance, there is new price walking legislation from the FCA that requires new and existing customers to be given fair and equal prices.
Insurers should also consider new products to meet customer needs. For example, pay-as-you-go motor insurance has gained popularity post-pandemic and embedded insurance can be a valuable way to gain new customers and build long-term loyalty.
2. Leverage the value of data
Leveraging the value of data to discover customers’ contextual needs in order to personalise products and pricing, as well as help develop consumer loyalty, will soon become the expectation. Data also enables dynamic pricing and risk modelling, which can help to reduce operating overheads.
Of course, insurers need to learn how to use data ethically. Using data in constructive and positive ways can contribute towards an enhanced customer experience, driving engagement and building loyalty.
3. Find opportunities for time and cost savings with automation
With teams and budgets shrinking, automation is one way to enable teams to do more with less, to both accelerate and improve customer outcomes.
For example, Emergn recently helped one client reduce the time spent on new claims administration by 70%, taking processes from weeks to hours. This simultaneously lowered the cost of serving customers while making a positive impact on customer satisfaction.
But first, organisations must begin by identifying the most impactful tasks to automate by clarifying the business outcomes they want to achieve.
Then, firms can narrow in on where there are highly repetitive and complex processes that have potential for user error - for example, where processes involve multiple users altering data that exists in multiple sources. Automation can help reduce admin errors and also help identify fraud early, meaning greater time and cost benefits.
By starting small with processes such as claims administration, insurers can prove the value automation delivers, learn from the implementation and then scale up. Most importantly, the use of automation can speed up workflows and free both budget and employees to focus on more valuable, strategic initiatives.
4. Implement modern ways of working
Insurers can take advantage of this period of change in the industry. Agility and a product mindset are critical to delivering the products and services that exceed customer expectations.
Modern ways of working can help insurers improve decision-making and speed up delivery, thus improving outcomes for their organisations, shareholders, employees and customers.