In part two of our three-part blog series, we explore what is keeping individuals in the insurance industry up at night. While those in the retail industry are plagued with concerns of Amazon’s looming takeover, the concerns of the insurance industry are much different.
With insurance carriers and executives finally realizing that technology can offer more benefits than just cost saving, the possibilities of how to successfully leverage and implement the various solutions available is a daunting task. The unknown unknowns are causing a lot of concern and angst throughout this industry, resulting in insurance carriers falling behind.
Let’s explore these unknowns in more detail, and what steps insurance carriers can take to ultimately develop a modern commerce ecosystem and blueprint for transformational planning that will position them for the future.
Understanding the Unknown Unknowns in the Insurance Industry
There are a few different things that are contributing to the larger unknown in the insurance industry. For example, while insurance carriers want to harness the power of new and innovative technologies such as data analytics and artificial intelligence/machine learning to transform their business internally, they are challenged with how to do this while also ensuring their business remains relevant and profitable. Staying on top of cyber and other digital attacks, and how technology can help them do this, is also a big unknown for many throughout the industry.
With the rising need to connect with customers on a more personal level, the insurance industry is starting feel outside pressure and competition. Industry silos that once kept various business verticals from overlapping are now breaking down, as evidenced by Travelers’ recent 2018 partnership deal with Amazon. It’s clear that new competitors are more equipped to better respond to the shifting wants and needs of customers, and insurance carriers are unsure of which solutions to implement to match the power of new competitors.
Helping clients prepare for ever-present and emerging risks such as natural disasters, hurricanes and flooding are also a top concern. With natural disaster incidents occurring more and more frequently each year, insurance carriers know they need to change how they help clients prepare and react to these events in more efficient ways however aren’t sure how exactly to do that.
Overcoming the Unknowns to Provide Better Experiences to Customers
Although there are many unknowns that are keeping this industry up at night, insurance companies are starting to realize just how big of an impact the customer experience has on their business and their bottom line. When implemented correctly, technology has the power to centralize disconnected systems and remove friction, ultimately allowing agents to deliver better experiences for their customers.
The benefits of a digital transformation are clear, and for those who are looking, and ready to tackle the unknowns head on, the first step is to conduct an expert review of what their current experience looks like for consumers and the team supporting those consumers within the company. This will provide a blueprint of what their systems currently look like, highlight where improvements can be made and ultimately help them determine what friction is stopping them from reaching their goal.
When conducting this assessment, keep a few things in mind:
- Hire an outside person to come in and do the review. Having an outsider’s perspective will provide an unbiased assessment of how things are working and what needs improvement.
- Don’t let the process be a time intensive one. Oftentimes, larger companies will go overboard with the evaluation process – with some companies drawing it out to last months. This process should take up to two months at the most.
- Continuously monitor the digital landscape – this should be done quarterly or at the very least annually as it allows organizations to stay on top of changing consumer and market trends. Having this knowledge enables leadership teams to make informed decisions and any necessary adjustments to their strategy.
As consumer wants and needs continue to evolve, the need to transform to meet these changing needs is critical for the insurance industry. Insurers cannot avoid this phenomenon as traditional industry borders fall away, and the winners and losers will be defined on how they manage this transformation. Although there are many unknowns, by harnessing the power of innovative technologies and proven techniques, insurance carriers can improve efficiency and customer satisfaction as well as realize new strategic opportunities. This transforms unknowns into profits.