Staying Competitive in the Digital Age – O&C Lab Report
Article Synopsis :
Digitalisation is putting the squeeze on traditional insurers: customers are now better informed and have higher expectations around personalised products and services as well as self-service options.
The report “Insurance Companies: Staying Competitive in the Digital Age” by O&C Labs outlines ongoing digital developments reshaping the insurance industry, suggests how insurers might benefit from them, and identifies factors critical on the path to becoming a digital insurer. Per the O&C team, there are six digital opportunities insurers can and should explore:
- Digital Customer Journey – From successful customer engagement during the research phase through directing and influencing the customer’s decision making process. The most significant part of this journey is offering a fast and simple purchase process across all sales channels, with products and services on online platforms accessible anywhere anytime. The final step of this journey is when the customer “refers” the insurer on social media networks which will help drive future sales.
- Social Media – Social Media represents valuable opportunities to enhance customer relationships and identify customer needs.
- Mobile Services – Mobile services provide immense opportunities for insurance companies to engage with customers on the go. Insurers are expected to leverage this potential and integrate mobile within the product and omnichannel environment. There should also be investments in app promotion.
- Big Data Analytics – Understanding risks helps in precise underwriting and increased pricing accuracy.
- Automated Processes – Flexibility, agility and cost-effective structures will help insurers break free from traditional forms of business operation. There is enormous potential to offer transparent and lean purchase, service and claim processes.
- New Market Players – Decreased customer satisfaction and loyalty has resulted in a rash of new-breed competitors such as start-ups and digital data giants. These companies are equipped with better data pools and expertise in collecting and analysing the data; they’re also more agile and capable of producing innovative products. Insurance companies can leverage this potential, learning and unlearning their existing business operations.
Another crucial part of digitalisation is the rapid expansion in the use of sensor technologies such as telematics, wearables and Internet of Things (IoT).
According to O&C, to become digital insurers must identify and close digital gaps in the company, making digital investments and securing the right talent and skill sets to become a mobile-centric organisation.
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Digital Insurer's CommentsDigitalisation is about dismantling existing legacy processes and building a next-generation business that is more customer centric, futuristic and customer experience driven.
Insurance companies need to think and act boldly, leveraging data, analytics, mobile, and social, forging partnerships with start-ups and data giants.
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