Article Synopsis :
Life insurers have been latecomers to the digital era. That will have to change.
“Life Insurance – Ready for Digital Spotlight” from McKinsey makes the case for life insurers to adopt an omni-channel approach, engaging customers in the right way and in the proper sequence. It’s about more than just developing a mobile app; it’s about a complete revamp of organisational culture and operations, integrating AI, analytics, and robotics. Recommended areas of focus include:
1. Digitalisation: Modernise existing channels – Opportunities include:
- Using customer data (from social media, internet searches) to drive better understanding of life insurance needs.
- Redesign and automate customer interactions toward reduced response times.
- Integrate new technologies such as click-to-call, live video chats, and e-signatures.
- For sales teams, deploy CRM and advanced analytical solutions to support decision-making and seamless distribution.
2. Omni-channel to deliver an unbroken customer experience –
Invest in capturing all kinds of customer data from all possible sources, even from the channels of customer interaction. This information can be leveraged to provide better communication, services, and experiences to the customer.
3. Personalised products and services:
Over the next 5-7 years, only the most disruptive life insurers, capable of providing innovative products and services and superior customer experience, will thrive. There are four ways to personalise products and services:1) Risk coverage by risk profile, 2) Delivering products which can be customized by channel, 3) Customised communications, and 4) Personalised pricing.
The top three impediments to digital transformation referred to above are:
- Lack of organisational support for change.
- Advisors’ resistance to CRM tools.
- Legacy IT systems.
To overcome these obstacles, digitally ambitious leadership is required. It’s not about technology, but a new way of thinking and working. Ultimately it’s about culture change, which cannot be achieved with half-measures.
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Digital Insurer's CommentsJust as consumers are fundamentally changing, so too must the life-insurance business. Carriers able to transform their interactions with digital consumers, putting them first, will differentiate and grow. Carriers clinging to the past, will find themselves relegated to selling undifferentiated products to a shrinking base of analog buyers.
It starts and ends with customer. When you think about your own organization, what it is, what it does, your thinking is limited by what you’ve always done. But when you think in terms of the customer, you can be far more pioneering.
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