What are the challenges of the insurance sector?
Many insurers have taken advantage of the pandemic to boost their development, however, the sector must get rid of the “traditional” stigma to be able to access the new digital consumer profile.
The report ‘The challenges of the insurance sector 2021’, prepared by the Think Tank that brings together the main players in the sector around Vodafone Business, has described seven major challenges for the insurance sector in 2021.
Insurers are aware that knowing the customer is the axis of their business and the technology that allows them to evolve to remain competitive.
Thanks to the management of big data, they can learn about new aspects of customers, especially through tools such as IoT and 5G.
Insurance sector trends
These are the benefits provided by the new trends in the insurance-client relationship:
- Generation of value through data. Data has become a strategic asset for companies. Thus, you can accurately profile risk and detect fraud.
- Customer experience. Customers are of paramount importance, so it is essential to offer a satisfactory experience that meets new needs and profiles. In this regard, more communication and transparency are being demanded from insurers:
New policies and products demanded due to change in social habits
Ecosystems to provide a comprehensive and omnichannel solution to the customer
- Ecosystem development. Meeting new consumer demands means working in other areas and new scenarios. Alliances must be chosen well.
- “Coopetition” Insurtech. In traditional companies arises the dilemma between competing or collaborating with the insurtech. Betting on co-creation will allow us to accelerate solutions and act as a laboratory for the new way of consuming insurance.
- Omnichannel. To relate to the most important thing for an insurance company, the client. This is a tool that cannot go unnoticed and will help to offer a comprehensive experience to customers. It also Improves operational efficiency, distribution and customer satisfaction.
- Margin management. Incorporate digitization opportunities such as pay-per-use or rate customization. These types of resources have a significant effect on profitability.
- Acceleration of digital and cultural transformation. Placing the client at the center and making access to the most advanced tools and methodologies available to employees and channels. Some of the innovations that are gaining importance within the insured sector are: Big Data, Cloud, Artificial Intelligence, chatbots, Internet of Things (IoT), blockchain (specifically smart contracts) and 5G.
How do insurers reach the youngest profiles?
Today’s consumers are used to both independent information retrieval and a consistent database across all channels and end devices.
These new interaction formulas, based on personalization, immediacy and accessibility allow an attractive customer experience. As a result, there has been a change in customer needs that also affects the insurance industry.
Since insurance is an intangible product, the customer experience is particularly important here. It serves as a quality benchmark for the insurance product.
Therefore, it has become a central question in the insurance industry: how can you achieve a consistent and engaging customer experience? This serves to ensure market diversification that must be based on a coordinated omnichannel strategy and consistent implementation.
What does it mean to provide an omnichannel service?
It is the continuous integration of all communication channels in order to offer better customer management, improving interaction and offering a totally personalized experience regardless of the medium.
A coordinated and consistently implemented omnichannel strategy enables insurance companies to meet the increasingly individual needs and customers’ expectations. By closely interconnecting sales and communication channels, information can be exchanged in real time and processes and structures can be designed much more efficiently.
The use of current technologies also promotes customer-specific sales processes and advice, and uncovers potential up-sell and cross-sell potential.
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