Customer expectations are changing, triggered by the technological evolution and service offerings of new players. They expect a more user-friendly, real-time, fluent and digital experience, whilst retaining an individualised service from their insurer. So, in order to become or stay relevant, insurers should not only improve their core insurance offering but also go beyond that core offering and help their customers assess and manage their risks.
Over time, the needs of a customer changes. A new job, new family or new house for example change the financial situation and requirements. Today, insurers have the possibility to help customers determine their risks and create awareness based on their changing needs. This is doable due to the rise of concepts like the internet of things, big data and data analytics, in combination with trends like Open Banking/PSD2. PSD2 for example can aggregate information from various bank accounts to make someone aware of how much money can be put in a pension plan and sensors tell you when your roof should be repaired
By making the customer aware of a risk, insurers can help them deal with that risk by creating or motivate them to participate in platforms and ecosystems around specific customer needs (outside-in). For example, around healthy living, safe driving, housing arrangements after retirement, financial planning and so on. For a customer it is of course always better to prevent a house fire than just receiving the claim afterwards. So, the insurer can assist to create awareness and help the customer assess the electrical system of his house or direct him to someone that can help him clean the chimney for example.
Where an insurer takes on the risk by selling the customer an insurance product, they can maximise their revenue by being more efficient themselves. By implementing innovations or apply LEAN principles they can improve their current operations. Some examples are using robotics, digitalisation of onboarding processes and improve the way claims are being processed to allow customers to file their claim in a quick and easy way, maybe even automated, and get fast feedback or payment.
For most insurers, stepping away from their core services requires new capabilities and time to build. They need to come up with ideas and grasp the opportunities that could be future growth engines. These will extend the insurer’s current competencies into new, related markets and change the nature of the insurance industry. Projective’s ecosystem can help them achieve these changes. We combine consulting, delivery and innovation capabilities with deep domain expertise to accelerate identification, development and the launching of innovation opportunities.