Lately, the insurance industry has been undergoing a profound transformation. Insurance carriers are looking at their current business models and re-thinking the way they do business. They are treading a fine line between maintaining profitability and creating good mindshare with their current (producers and end customers) and future customers. As convenience, agility, and personalization take over, insurers have no choice but to chart a path that will help them become Inventive Insurers.
Source : Capgemini World Insurtech Report 2019.
Today’s customer, regardless of demographics, expects much more than traditional insurance coverage from their current insurer. With technological advancements, customers are exposed to hitherto-unknown risks and hope that insurance carriers will cover them. This drives insurance carriers to not only innovate when it comes to new products but also to ensure that pricing and underwriting principles remain sacrosanct, in line with basic insurance fundamentals.
Source : Capgemini World Insurance Report 2019.
With nearly 40% of end customers perceiving that they are not covered for medium to high risks, tremendous opportunity arises for insurers to reinvent themselves. Insurance carriers cannot afford to lag behind as instant gratification becomes the natural stance of the new-age customer. According to Capgemini’s World Insurance Report 2018, nearly 50% of insureds still prefer the human touch, regardless of customer demographics. This means that both traditional and new distribution channels will continue to work in tandem to provide a seamless and a truly omnichannel customer experience.
Source : Capgemini World Insurance Report 2018.
With open banking now a reality that is firmly backed by regulators, we foresee that open insurance will not be far behind. If we look to the future, collaboration will be an imperative intervention that will catalyze the insurance industry and propel it to the next level. Insurance companies will need to build alliances with the complete ecosystem that include partners beyond insurance, such as lifestyle and healthcare services. This approach will enable insurers to attract and retain customers. It will provide an out-of-this-world customer experience, resulting in higher persistence and a loyal customer base, and it will be a remarkable instrument for fostering greater customer advocacy. Insurers will then surpass their traditional roles as they master the art and science of creating a truly customer-centric business. With the customer being at the core of most digital transformation strategies, Capgemini’s World InsurTech Report 2019 argues that it is those insurers that are willing to take this leap of faith to partner and collaborate, will truly stand out as Inventive Insurers.
Interested in learning more about core competencies of an Inventive Insurer? Be sure to download a copy of the World InsurTech Report 2019.
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