Recently we have witnessed tremendous advancements in new technologies which have led to the increased processing ability of handheld devices. Devices such as smartphones and tablets have now become a part of daily life for insurance consumers and have influenced their preferences and needs. These new and emerging customer preferences are reflected in functional processes and product offerings from insurers across the globe.
Insurers are improving their profit margins by leveraging newer technologies to lower their operational costs. With the help of advancements in technology, insurers have found innovative ways to connect with customers and serve them better. As customers continue to integrate the use of the internet in their daily lives, it has become an attractive medium through which companies can advertise and distribute insurance products. Over the past few years, the online space has emerged as the dominant distribution channel.
Acknowledging this change in customers’ buying habits, insurers are looking for technical solutions to develop a coherent multi-channel strategy by integrating new emerging channels such as mobile with traditional channels. This will provide a uniform customer experience across each channel. These initiatives are enabling insurance firms to scale up their business models by strengthening their internal processes with the ultimate goal of better customer service.
This paper discusses explores these trends and looks at how insurers are improving distributor partnerships to target customer segments at all levels of income; empowering agents and brokers with technology; and increasing the use of mobile as a new direct channel.