Insurance customers of the past were passive buyers; today they’re active participants. They review insurance products and report experiences through their social networks. Their buying journey is their own, and they demand new levels of access, mobility and personalization. They want to engage on their terms and have low brand loyalty. It’s a buyers’ market.
The shift in customer power means that insurers need to rethink every aspect of their business:
- Relationship with customers, intermediaries and partners
- Products and services they bring to market
- How they engage and enable collaboration
- How they innovate and harness the power of service provider ecosystems
It can be difficult to know where to start. Technology can leverage the transformation, but people, processes and culture are proving to be much more difficult. With our extensive work with digital insurance clients, we see the most progress when insurers focus on three key areas:
1 Mastering Engagement
Insurers who develop a strategic vision of digital insurance, with the ambition to change the basic value proposition from one of the commoditized indemnification to one of rich, continuous value, are more successful in engaging with consumers. To make this change, insurers must develop products and services that fulfill the gap between purchase and claim.
2 Mastering Understanding
True digital insurers understand their market needs. To take on this journey, it is essential to transform the business from being risk table-based and policy-centric, to behavior-based and customer-centric. It all starts with investing in a new breed of systems that embeds analytics in every aspect of the value chain. It means developing a deeper and richer understanding of market needs, at both segment and individual customer level — not only at a point in time, but throughout the customers’ lifetime relationship and on a relevant and regular basis. The same systems and tools can be turned inward to better understand the business, operations and employees, creating insights that can be used to incrementally improve and grow.
3 Mastering Consumption
Finally, mapping the customer journey is key. To develop a true omni-channel experience for customers, an insurer needs to embrace the concept of service-enabled enterprise and the API economy. This begins by focusing on ways to make the company easier to do business with and envisioning a customer’s buying journey across channels. The concept also represents a move away from in-house IT to embrace external infrastructure, cloud computing, as-a-service options and mobility.
Focusing on these three key areas can enhance insurers’ ability to provide a more relevant value proposition for their customers, enabling a foundation for market differentiation and thus business growth.
Join CSC’s Data Empowered Insurance Conference on November 17 in Copenhagen, and get more insights on how to master tomorrows consumer needs. Find the agenda and sign-up here: http://bit.ly/2dyPper
Liselotte Munk Poulsen is Industry General Manager at CSC’s Nordic insurance business. With more than 20 years of experience working with the Insurance industry, Liselotte holds a solid track record and has built a solid performing insurance software company with a substantial consultant business. Through a holistic end-to-end perspective of the global insurance industry, Liselotte enables her knowledge to provide value to the Nordic insurance industry. On daily basis Liselotte drives CSC’s Nordic insurance business, leading a team with deep insight into P&C and L&P. The clear objective is to leverage global capabilities that for decades has been developed and utilized by more than 1,900 insurance companies worldwide into the Nordic region.