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4 Ways Insurers Can Leverage Technology to Differentiate Themselves

 
 

Insurance Insights | Robert Anderson |
16 November 2022

Aggregator sites, telematics, and mobile apps have changed what insurance customers expect. In the past few decades, technology has dramatically changed how we buy products and services, including insurance. Historically, buying insurance meant visiting a broker face to face. We saw an evolution with insurers selling direct to consumer. And then, with the rise of the internet, you could buy insurance online.

Shortly thereafter, the aggregators arrived, and you could get multiple quotes at the same time. Smart mobile devices meant you could interact with your insurer through an app in your pocket—and the digital revolution continues today.

With the rapid evolution of technology and customer expectations, it can be difficult to keep pace. Below, we’ll explore four ways you can leverage technology to better meet customer expectations and differentiate from the competition.

#1. Streamlining the customer experience

One of today’s top differentiators is to offer a more cohesive and streamlined customer experience. To do this, you will need to have the right technology systems in place. However, we have found that many insurers are still using legacy technologies, which means there are a lot of inefficient processes happening behind the scenes. This leads to a slow and frustrating experience for customers.

We shared in our “Top Trends That Will Underpin Digital Acceleration in Insurance” report that most insurers struggle to update legacy technology in a way that meets industry and customer expectations—even when some of these insurers are ready for digital transformation.

Modernization allows you to consider the end-to-end user journey and build systems from the ground up—or update legacy ones—with the customer experience at the heart of it all. While many insurers are still focused on their products, being focused on meeting customer needs will help set those offerings apart.

#2. Collecting the right data

To provide a great customer experience, you need data. This means you not only have to collect the right data, but also utilize it during the critical moments of the customer’s journey. 
As our report notes, insurers need to understand the data they are already collecting, what new data they need to collect, how to collect it, and how to use the data to their advantage.

Data needs to be accessible from a central point so that it can be used as and when required, which may require new technologies to be implemented. While other insurers are struggling with understanding what data they have, you can be miles ahead of them in being able to leverage it to provide a better customer journey.

#3. Personalization across the journey

Getting your data collection and usage correct will also allow you to personalize the customer journey.

With this granular data, you can start to use AI or predictive analytics, which will help to deliver:

  • Products that customers actually want to buy, instead of what you think they need
  • Quotes that are competitive, not just in price, but in overall coverage
  • A claims journey that is simple and efficient

These will all help you stand out throughout the customer journey. Personalization throughout the customer journey leads to happier customers less likely to switch to a competitor.

It’s important to keep in mind that the large amount of data needed for effective AI and predictive analytics may require you to rethink the way you store and use data. In legacy systems, information is often fragmented or siloed in different departments because legacy processes can’t consolidate all of it. By making changes to your data strategy, you can unlock the benefits that AI and analytics provide.

#4. Using innovation as a differentiator

Another benefit of advancements like AI and machine learning is that they allow for more sophisticated and valuable data utilization and the creation of predictive algorithms. These algorithms can be commodified and used to provide visibility into consumer behavior and potential risk.

You can then leverage this insight to identify the actual, real needs of current and future customers, which in turn allows innovative products to be identified and created to meet these needs. No longer will you be confined to just the traditional way of doing things, which includes selling traditional products.

Insurers who innovate to meet customers’ identified needs will be able to leapfrog the competition in the marketplace. Innovation can differentiate your offerings while simultaneously providing a customer journey that is simpler and more personalized overall.

Support for the digital transformation journey

Technology is always changing—and it’s brought significant opportunity to insurers looking to stand out. By streamlining and personalizing your customer journey and using data to your advantage, you can both improve your customer experience and stay competitive in an evolving market.

To learn more about how you can jump start your digital transformation journey and stand out amongst your peers, download Endava’s full trends report.

Robert Anderson

Principal Architect

Robert is an enterprise architect with 20+ years of IT experience and Endava’s principal architect for the insurance industry. His focus is on emerging IT trends, specifically those supporting customer experience, and ensuring that business objectives are met through strategic architecture. Robert has a proven track record of driving change through the adoption of best practices and industry standards. In his spare time, he is a photographer and has had his photos published in magazines, newspapers and photography sites around the world.

 

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