Aggregator sites, telematics and mobile apps have changed what insurance customers expect. In the past few decades, technology has dramatically changed how we buy products and services, including insurance. Historically, buying insurance meant visiting a broker face to face. We saw an evolution with insurers selling directly to consumers. And then, with the rise of the internet, you could buy insurance online.
Shortly thereafter, the aggregators arrived, and you could get multiple quotes at the same time. Smart mobile devices meant you could interact with your insurer through an app in your pocket – and the digital revolution continues.
With the rapid evolution of technology and customer expectations, it can be difficult to keep pace. Below, we’ll explore four ways you can leverage technology to better meet customer expectations and differentiate from the competition.
1. Streamlining the customer experience
One of today’s top differentiators is to offer a more cohesive and streamlined customer experience. To do this, you will need to have the right technology systems in place. However, we have found that many insurers are still using legacy technologies, which means there are a lot of inefficient processes happening behind the scenes. This leads to a slow and frustrating experience for customers.
We shared in our Top Trends That Will Underpin Digital Acceleration in Insurance report that most insurers struggle to update legacy technology in a way that meets industry and customer expectations – even when some of these insurers are ready for digital transformation.
Modernisation allows you to consider the end-to-end user journey and build systems from the ground up – or update legacy ones – with the customer experience at the heart of it all. While many insurers are still focused on their products, being focused on meeting customer needs will help set those offerings apart.
2. Collecting the right data
To provide a great customer experience, you need data. This means you not only have to collect the right data but also utilise it during the critical moments of the customer’s journey. As our report notes, insurers need to understand the data they are already collecting, what new data they need to collect, how to collect it and how to use the data to their advantage.
Data needs to be accessible from a central point so that it can be used as and when needed, which may require new technologies to be implemented. While other insurers are struggling to understand what data they have, you can be miles ahead of them in being able to leverage it to provide a better customer journey.
3. Personalisation across the journey
Getting your data collection and usage correct will also allow you to personalise the customer journey.
With this granular data, you can start using artificial intelligence (AI) or predictive analytics, which will help to deliver:
- Products that customers actually want to buy, instead of what you think they need
- Quotes that are competitive, not just in price, but in overall coverage
- A claims journey that is simple and efficient
These will all help you stand out as personalisation throughout the customer journey leads to happier customers who are less likely to switch to a competitor.
It’s important to keep in mind that the large amount of data needed for effective AI and predictive analytics may require you to rethink the way you store and use data. In legacy systems, information is often fragmented or siloed in different departments because legacy processes can’t consolidate all of it. By making changes to your data strategy, you can unlock the benefits that AI and analytics provide.
4. Using innovation as a differentiator
Another benefit of advancements like AI and machine learning is that they allow for more sophisticated and valuable data utilisation and the creation of predictive algorithms. These algorithms can be commodified and used to provide visibility into consumer behaviour and potential risk.
You can then leverage this insight to identify the needs of current and future customers, which in turn allows you to identify and create innovative products to meet these needs. No longer will you be confined to just the traditional way of doing things, which includes selling traditional products.
Insurers who innovate to meet customers’ identified needs will be able to leapfrog the competition in the marketplace. Innovation can differentiate your offerings while providing a customer journey that is simpler and more personalised overall.
Support the digital transformation journey
Technology is always changing – and this brings a significant opportunity to insurers looking to stand out. By streamlining and personalising your customer journey and using data to your advantage, you can both improve your customer experience and stay competitive in an evolving market.
To learn more about how you can jump-start your digital transformation journey and stand out amongst your peers, download our full trends report.