Library: Charles Taylor – Is customer demand driving change in insurtech?

Executive summary :

Customer centricity is currently central to insurtech and many of the innovations being adopted. InsurTech Magazine caught up with Jo Butler of Charles Taylor to find out more.

The future of insurtech is shaped by customer demand

With customer demand fuelling transformational changes in insurtech, it’s not always clear which trends are here to stay, and which will dissipate as technologies develop. We caught up with Jo Butler, product portfolio manager at Charles Taylor InsurTech, to find out more.

What factors, in your opinion, have driven the move towards customer-centricity in insurance?

The insurance industry has seen a significant change in the needs and demands of its consumers over the last few decades.  Up until recently, policyholders just accepted that buying insurance could be baffling and that making a claim was probably going to be a long process.  This acceptance has started to change.   Consumers now demand better and more instant service, driven by patterns of more customer-centric organisational behaviour in other industries. Customers expect to interface at a time that suits them within a system that has no delay and with fewer hurdles in the process.

In banking and home energy provision, the benchmark of leveraging technology to provide “good customer service” has been rising steadily with 42% of customers preferring the mobile banking experience, for example, to a desktop and in-branch experience.

Compounding this, the insurance industry ecosystem is a particularly complex web of organisations and data, resulting in the data and the insights often living in the wrong part of the value chain.

The industry is suffering a certain ‘fear of missing out’ (FOMO) as other sectors have drastically improved the bottom line and unlocked some serious sustainable growth for those organisations that get it right.

Is the customer-centric approach a trend, a development of existing systems or a new wave that is here to stay?

That very much depends on where you are as an organisation and where you want to get to, and we see this as an area where organisations will continue to evolve their approach as they grow and prepare for the future.

For some organisations, becoming more customer-centric might mean small enhancements to the current approach in order to get the “very last value” out of their existing systems, for example using digital front-end layers to help to unify legacy silos and provide front end interaction.  For other organisations with smaller amounts of legacy, they are better positioned to take on more ambitious digital programmes. These organisations can shift their focus to leverage more of the newer technology that can help them to connect more deeply with their markets.

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