It’s no secret that property and casualty insurance carriers are facing new horizons as customers — influenced by the digital offerings from ultiple industries — come to expect the same ease of interaction
and purchasing from their insurer. Whether you’re talking about young
digital natives, Generation Xers or baby boomers, JD Power (2016) found
that nearly 75% of shoppers obtain quotes and research insurance online.
Can insurers give customers
what they want?
Becoming a digital leader requires a holistic
approach. It’s not enough to simply implement an online portal or add social media
marketing into the mix. Insurers must incorporate digital shopping and buying channels
into a transformative, customer-centered effort or risk losing market share.
In a recent PwC survey (2016), 83% of
insurance CEOs cited the rapid evolution
of technology as a major concern to their
prospects for growth, as legacy technology prevents many insurers from achieving their digital distribution vision.
Redefining the insurance
Customer service-driven enterprises meet
customer expectations on many levels.
For insurers, that means offering engage-
ment options that allow them to research,
quote and purchase coverage through the
channel of their choice. Legacy systems
make offering this kind of customer envi-
ronment difficult, but not impossible.
Digital strategies overcome legacy
challenges by unifying data from disparate core systems behind a central console. Centralizing data enables auto-quot-ing and underwriting, but also supports
cross-channel engagement, giving customers the ability to start an interaction
in one channel and finish it in another –
without losing their place or starting over.
Personalizing the insurance
Customers want insurers to know who they
are and provide what they need. Analytics
inherent to leading-edge digital capabilities
use information gathered in customer interactions to identify coverage gaps and offer
real-time product recommendations that
will better mitigate risk and protect assets.
Analytics allow insurers to customize
The product conundrum
offerings in a similar way, tapping into in-
formation stored in the customer’s data
to recommend products that could better
serve their lifestyle. For instance, a customer
who drives a limited number of miles a year
might benefit from a pay-per-mile policy.
Through digital distribution, insurers can
analyze customer data, make recommen-
dations and even quote, bind and issue the
product via their channel of choice.
As multi-generational consumer lifestyles
change, so do their insurance needs, resulting in an ever-widening array of product
requirements. Pay-as-you-go and flexible
term policies are becoming more com-mon-place and coverage for everything
from relationships to drones is emerging.
If digital distribution is to be successful in
positioning insurers as customer-centric institutions, it must provide access to a broad
array of products, allowing carriers to deliver complete coverage to their customers,
including products they don’t carry, without
taking on unnecessary risk. In this way, customers receive the personalized service they
are seeking, and insurers improve acquisition and retention rates by allowing customers to consolidate their coverage with a
single carrier at a price they can afford.
As technology expands to make lives easier,
customers will expect greater convenience
and more personalized services. Improved
access to quoting and purchasing across a
variety of channels is part of the equation,
but the ability to deliver all of the products
a customer needs to protect assets and mitigate risk will determine the winners in the
digital transformation underway.
Insurers with access to the product
choices necessary to meet customers’
requirements will find greater market
share, heightened customer loyalty, and
Kathleen Garlasco (kathleeng@boltinc.
com) is senior vice president of enterprise
marketing for BOLT Solutions, Inc.
Rethinking a Digital Approach