Are you interested to learn more about the future of car insurance from an international perspective? The key for insurers is to harness these new trends to provide their customers with more value and enhance their customer care.
Digitising Operations1
Car insurance companies need to digitize their business operations and thus speed up internal admin processes. Say, “goodbye” to only using spreadsheets and say, “hello” to automated processes and intuitive online dashboards.
Car insurance companies need to re-evaluate their approach to business. They should phase out legacy systems in favour of fully digital solutions that are centred on customer satisfaction. This is not a simple task for many companies, as it requires a major, organisation-wide mind shift. For example, legacy systems may be more vulnerable to a cyber-attack than an equivalent modern system. Insurers can’t afford to have their customers’ and their data exposed to hackers.
Data1
Digital interactions with customers and internal processes generate significant amounts of data, which should be respectfully and effectively managed.
Car insurance companies need to be pillars of trust and dependability for their customers at a time when the public’s private data is often exposed or misused.
This influx of data needs to be properly managed so that in-depth insights can be extracted from it more quickly and in a more intelligent manner. Knowing one’s customers and how to treat them is more important than ever. How can the data you have help your business grow and improve your customers’ experience?
Artificial intelligence and Machine Learning1
The glue and engine behind digitisation are provided by empowering computers to make decisions within safe and tested parameters. Everyday tasks can be digitally analysed, processed and executed without any human interaction.
All such changes will cause car insurance companies to employ a wide range of new employees, who are qualified to make this digital transformation happen and maintain it. Existing employees should be continually upskilled to contribute to their company’s digital transformation. No one needs to be left behind. This modernisation of the car insurance industry should free up more time for people to apply creative problem-solving in this ever-changing complex world. These tasks will be dominated by humans for the foreseeable future.
Interconnected Digital Interfaces1
Car insurance companies will further mature their approach in connecting with their customers across several touchpoints, from advanced apps to smart devices in their cars, and beyond. Interconnected ‘internet of things’ technology can make interacting with insurers easier for their customers.
Digital-first Customers1
We live in a world where more and more interactions with companies are purely online. This is, in many ways, more complicated for some insurers, who are used to working in the traditional way of dealing with their customers. Online customer interactions with car insurance companies should be tailored to make it as effortless as possible.
This includes digital marketing, as a touchpoint across the full spectrum, from prospective customers to existing customers. How does your company respectfully harness these digital marketing channels to better engage with your target audience? Further integration and use of emerging technologies will become more evident – from virtual reality to augmented reality. Car insurance companies will find new, user-friendly ways to merge the real and digital worlds to better serve their customers.
Insurers need to find new ways to add value to customers’ ‘digital lives’ or online lifestyles.
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Disclaimer:
This article was prepared by Eric Sandmann in his personal capacity. The views and opinions in the article should not be attributed to anyone but the author unless expressly stated. Nothing in this article should be relied upon as advice, this publication is presented for informational purposes only. No person should act or refrain from acting in reliance on any information found in this article, without first obtaining proper financial advice from the appropriate professional. The author makes no claims, promises or guarantees about the accuracy, or completeness, of any information linked from, referred to, or contained in this article. The author reserves the right, to edit and change the content of this article.
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1 https://home.kpmg/xx/en/home/insights/2019/02/insurtech-10-trends-for-2019-fs.html