Mariana Veiga Nunes, Digital Consultant at Innovagency
Pedro Lobo, CEO at Innovagency
Digitisation in insurance has accelerated considerably over the past 5 years, aided by the rapid pace of digital innovation and technological capability, as well as changing customer expectations brought about by the pandemic.
Now, as another new year begins, my team at Innovagency has looked ahead to the digital trends we believe will shape the year ahead:
1. Self-service – Customers increasingly want to take control of their insurance journey as they do in many other areas of their daily life. If they can shop, bank and manage their social lives online, arranging insurance should be no different. Across the market we’re seeing a host of different technologies enabling customers to manage their own policies at various stages. From customising the levels of cover they require using an online self-service platform, to managing renewals and mid-term adjustments via AI-powered chatbot, the insurance market is fast adopting ways in which customers, both personal and commercial, can manage elements of their own policy. Not only does this give customers the power to manage their policies, simply and quickly, it also reduces the backoffice workloads that can prevent businesses from growing profitably.
2. Blended experiences – not all customers are the same, and though many consumers now prefer a digital approach to insurance interactions, there will always be those who prefer the comfort and confidence generated by a conversation with a real person. Though the balance has shifted since before the pandemic hit in 2020, research by E&Y suggests that 20% of European consumers still prefer an in-person experience. This year it will be important for insurance businesses to remember this stat as they build their customer journeys and allow for a seamless blend of virtual and in-person interactions at various touchpoints.
3. Hyper-personalisation – It’s becoming increasingly important to create hyper-personalised, tailored customer experiences to build loyalty and provide the best possible product for customers. Using data, companies can ensure that the products they are building and recommending to customers are high in value and delivered at fairer rates. Research by McKinsey’s shows that 76% of customers are more likely to consider buying from brands that personalise, with a further 78% more likely to repurchase or recommend such products.
4. Data-driven business – McKinsey estimates that by 2030, AI implementation may increase productivity in insurance processes and reduce operational expenses by up to 40%. It is clear that businesses that can harness data in the right way, could stand to reap massive benefits in terms of time and cost savings. Applying smart predictive AI to data can improve customer satisfaction and increase the accuracy of the product and rates offered to customers.
5. Automation – Automation is going to be vital for driving greater efficiencies and allowing insurance professionals to focus on essential, value-add tasks rather than some of the more manual, administration processes that can take up too much of their time. We already see high levels of automation in the world of personal lines, but this is becoming increasingly applied to commercial lines previously considered too difficult to automate. As an example, EY developed a low-code digital platform, capable of comparing numerous carriers within minutes, saving brokers’ and clients’ time and improving the quote and bid journey.
