Insurtechs: reshaping the insurance industry
Insurtechs are companies that use technology to deliver seamless insurance services, identifying the weaknesses of traditional insurance providers and finding innovative ways to overcome them.
These companies are enhancing their ability to respond to the growing complexity of purchase decisions, with many digital insurance solutions for customers to opt for.
Traditional insurance companies are starting to adopt the strategy to digitize their operations and keep being the customer’s 1st option.
The key in the insurance sector’s digital transformation is adapting what already exists to improve the efficiency of services and personalization levels.
The customer: The focus of the revolution
Once customers have changed the way they do business, migrating even risky operations to the digital sphere, the digitalization of the insurance industry is all about serving the customer in the best possible way.
Data from TechSee show that 39% of US citizens who canceled a contract with a company in a 2-year period canceled it due to customer experience, and 11% of them were canceling insurance policies. Also, 18% of them canceled after a single annoyance.
Making the customer the center of all efforts is, therefore, essential to maintain the insurance services attractive and advantageous to both new and recurring clients, and the only way to address that is through a consistent and integrated digital experience.
How innovation shapes the Insurance industry
Digital acceleration does not mean throwing the company’s operations away. To be effectively and harmlessly applied, there must be an analysis of how digitalization can be applied to improve customer experience.
Take a look on how SURA, the insurance company, addressed some of their digital transformation challenges:
A peak in SURA’s Digital Transformation
The SURA group has an AFP which is working on the development of digital products that facilitate the exchange of AFPs via online, as well as delivering value to the customer through self-management services.
At a certain point, they realized the customer experience in the AFP had many shortcomings, as well as a lack of communication among the services they have developed and those that were in the portfolio.
This led to looking for a Service Designer profile to tie the dots and build interconnected services that bring tangible value to customers. After diagnosing the services available, the internal and the external customers, the big problem was clear: the lack of an after sales service.
Our consultant created then the “loyalty draft”, a program that would lead to a customer-centered service, to empathize, advise, educate and learn. Analyzing the Service Design, our consultant understood that the ROI of the service concentrates in the Loyalty metric, so the goal was reducing customer flight.
The first results of the new exclusive after-sales services for digital customers was the reduction of customer flight in 10 points compared to the previous period.
Keeping ahead of the industry
The insurance industry must understand that they are competing with modern companies that solve the customer’s problem while offering a great end-to-end experience.
“insurers are no longer competing against other insurers, but rather against the wide range of digital experiences customers now enjoy in their lives.” KPMG
The digitalization is key for traditional Insurance companies for making long-term operations dynamic, making sure all steps of the process are being conducted as efficiently as it gets.
In the Digital Transformation of a traditional Insurance company, data-driven personalization and process automation are applied to enhance the focus on the customer.
To drive the process towards the digital transformation, it’s important to count with a personalized and multidisciplinary squad. The Bridge specializes in such digital talents, and after evaluating the company’s context, we provide a full team, ready to work in a short time.
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