The world as we knew it is no more. So, what’s next for the insurance industry?

For the past two years, we’ve been discussing how the emergence of a global pandemic had an impact on our lives. There’s no doubt that our world has changed and that everyone – as consumers, workers and individuals – has adapted to it. The Insurance industry has had to adapt to a changed reality and redefined consumer needs and expectations, and it has had to rapidly redefine outdated business models.

We can now see that what customers needed and expected and how they interacted with insurers pre-pandemic is different to what they want, need and expect going forward. This changing customer behaviour is something insurers do not have the luxury to ignore. Now, the industry can take advantage of technology to reconnect with their customers more meaningfully.

Of carriers are concerned about possible fundamental changes that may have been prompted by the pandemic. Source: Deloitte

The majority of consumers demand seamless multichannel experiences that can only be delivered via an omnichannel platform. It is imperative that insurers have the right platform to make this successful immediately with tighter integration, and consistent content and experiences.

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Digital Xperience in Insurance

Customer needs are changing quickly, and many insurers may feel ill-equipped to adapt their business models and improve customer experience. Most consumers now expect seamless experiences across multiple channels because this is how they interact with other brands in different areas of their lives.

Still, despite insurers concern about the overarching impact of the pandemic on both consumer behaviour and its long-standing effects on the economy, not all seems to be bad news. All these changes – those we have already observed and those we cannot yet foresee – will set the scene for new insurance products and services and new customer engagement models, and will usher in, most importantly, the need to provide a seamless customer experience that takes advantage of the different channels our customers already make use of. 

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Challenges and Trends

Opportunities

Future of Insurance:

2021 was a challenging year, and while the industry may witness growth in the coming years, there are still some challenges and trends that the industry needs to tackle going forward.

Challenges

Insurers need to explore how they can modernise operations, streamline business processes, reduce operating costs and improve customer experience.

A cyber-attack is costly financially and for an insurer’s reputation. Attackers are exploring the vulnerabilities exposed to work-from-home models, and so insurers must also increase investment in this area.

We believe that there are different use cases where this technology could make all the difference. However, it’s still unclear how this technology can be applied in the industry. There are still many different pain points that can represent an obstacle to the widespread adoption of this technology.

Because of emerging technologies such as automation, many job roles will be radically transformed and maybe even eliminated. There will be other jobs created by these technological advancements for which we will need different skills.

Trends

Personalisation is undoubtedly one of the themes that never go out of fashion and is still highly relevant. Coupled with the need for insurers to modernise their infrastructure, there’s a pressing need to focus on customer experience and becoming customer-centred.

Consumers are increasingly aware of their impact on the climate crisis and, therefore, can prefer insurers that respond to these concerns. Insurers that prioritise climate change and sustainability can help our planet and strengthen our economies long-term.

AI has been helping insurers make a more efficient claim triage, improving claim processing times and generally delivering a better service to customers. But the potential of this technology doesn’t end with the automation of the claims process.

By automating critical business processes, insurers get the chance to improve their services and achieve faster processing times, enabled by technology and the digitalisation of processes that, in the long run, will have a profound impact on the customer journey as well as customer satisfaction.

Insurers that can reassess their business models and take advantage of their digital capabilities to build more meaningful, more relevant customer experiences will be the ones that, ultimately, will thrive best into the future.

Are you ready for what the future of insurance brings?

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Ana PaneiroInsurance Industry 2022 – “What’s Next?”