In today’s insurance market, the increasing rate of risks such as natural disasters, cyberattacks, lifestyle and behavioral health concerns, and political upheaval are undeniably transforming the risk landscape – affecting both insurers and policyholders. Traditional product design and customer interaction methods are no longer working, meaning success now depends on quickly identifying new risks and adapting offerings to meet the customer’s ever-changing needs.
Unfortunately, this is easier said than done. Accurately quantifying the full impact of emerging risks is often tricky, either because the relevant customer data isn’t available or because insurers don’t have sophisticated data analytics and risk assessment tools – or both.
Technology is the differentiating factor that can empower insurers here, enabling them to overcome these challenges and manage emerging risks. It is the trump card that enables insurers to control emerging risks by taking a more proactive role in risk management.
Imagine a policyholder getting a daily reminder to take medication through a mobile app. Later that morning, they log their miles from a morning run on a fitness band that tracks premium discount rewards on an insurance app. On the drive home from work, their car breaks down. The vehicle’s telematics device automatically detects this and promptly alerts the insurer, who dispatches an assistance team from their organization’s partner network to get the policyholder back on the road. This is only a small sample of how insurance may work in the future.
By leveraging technology, the insurer of the future will evolve to become both a partner and a preventer, all the while continuing to be a payer, as described in the 3P customer engagement model charted by the World Insurance Report (WIR) 2019.
Insurer as Partner, Preventer, and Payer
Source: Capgemini Financial Services Analysis, 2019
Let’s take a closer look at these new roles.
Insurer as a partner
Insurers will become more involved, and participate directly in, their customers’ lives – behaving like a relatable brand. This will put them in a better position to offer the right services at the right time, through their all-round understanding of the various risks their customers face daily.
By acting as a partner, insurers will be able to develop and offer compelling value-added services that help customers better manage aspects of their lives. For example, Cigna partnered with Happify Health and Prevail Health to help customers improve their mental health and overall well-being. These platforms provide personalized online support through self-help tools and on-demand support from wellness coaches.
Insurer as a preventer
By offering risk-control consulting in addition to advising and educating customers on how to avert or better manage risks, insurers become preventers that also reduce risk severity through timely action. Tokio Marine Kiln (TMK) launched Cyber Ctrl, an insurance and services policy to protect commercial clients from the impact of cyberattacks. Through Cyber Ctrl, policyholders receive an intelligence-based critical alert service that reveals their vulnerabilities and detects, analyzes, and reports potential cyberattacks. The service also identifies where key employees may be susceptible to social engineering or blackmail.
Advantages of the 3P customer engagement model
Adding partner and preventer roles to their skillsets will boost insurer effectiveness and payer profitability.
The preventer role will reduce claims incidents, leading to lower costs and enhanced profitability. Insurers will be able to rise to a new level of partnership that boosts customer centricity, improves customer loyalty, and top-line growth if they provide customized offerings developed to meet their customers’ need to reduce risks.
The 3P model enables a win-win scenario as customers experience improved safety, and insurers benefit from better customer experience and lower claims costs.
To learn more about how emerging risks are impacting customers and how insurers are dealing with these risks, download a copy of the World Insurance Report (WIR) 2019.
 Cigna press release, “CIGNA Furthers Commitment to Promote Mental Well-being by Collaborating with HAPPIFY HEALTH and PREVAIL HEALTH to offer new digital tools,” November 8, 2018, https://www.cigna.com/newsroom/news-releases/2018/cigna-furthers-commitment-to-promote-mental-well-being-by-collaborating-with-happify-health-and-prevail-health-to-offer-new-digital-tools
 Insurance Journal, “TMK Launches Cyber & Services Cover to Help Combat Evolving Cyber Threat,” March 27, 2018, https://www.insurancejournal.com/news/international/2018/03/27/484459.htm