Pre-COVID, consumers viewed insurance merely as a safeguard. The prevailing practice was to buy the cheapest policy covering the maximum number of scenarios. However, five months into the global pandemic demands from insurance buyers have evolved. Consumers today desire tailor-made policies and deep insights on why they are paying a certain amount as premium. Moreover, the demand for faster policy processing is sky-rocketing.
For those in the insurance industry, this shift in consumer mentality heralds a new era. To stay relevant, structuring the organization around the latest trends is crucial to success.
So, here are five of the most important trends that will shape the insurance industry post-COVID:
1. Personalized Policies
In the insurance sector, interaction with customers is a rarity. Customers are okay with buying popular policies without much forethought and have close to zero communication with insurers unless a claim materializes or a dispute arises. This equation is fast becoming a thing of the past.
Customers are beginning to demand more interactions and choose bespoke insurance policies over traditional one-size-fits-all offerings. With the count of digital-savvy consumers growing by the minute, the pay-as-you-live model is also predicted to rise in popularity. Insurers that can offer these personalized policies will soon become the most sought-after and have the potential to grab substantial market share.
2. Customer-Centric Assistance
The change in consumers’ policy preferences has a significant influence on service expectations. A robust Customer Support Team is the need of the hour, in order to handle this shift in mentality.
While digital solutions could make most intermediaries in the value chain obsolete, an empathetic customer support team will be an indispensable link. While most organizations seldom have the time or the resources to train such a workforce, outsourcing to experienced CEM service providers will become a necessary step to stay competitive.
Allsec delivers quick and flawless Claims Management for the Insurance Industry.
3. Artificial Intelligence-Powered Customer Service
With personalization taking center stage, the importance of memorable customer service is immense. Consequently, delay in leveraging AI and machine learning tools will spell catastrophe.
Both with front and back-office functions, AI-powered tools like bots, real-time analysis of customer data, and swift implementation of strategies become crucial to procuring new customers.
Additionally, AI can also make Behavioral Policy Pricing a reality. This usage-based insurance practice has the potential to change the face of customer experience and redefine brand advocacy habits.
4. Blockchain Technology backed policy management
Paperwork ails every insurance company. Every insurance employee processes mountains of documents associated with policy management, putting tremendous pressure on costs and time management, and increasing the chances of human errors.
The answer lies in blockchain technology, that allows the management of data across multiple interfaces and stakeholders, without compromising on its integrity. Increased agility of real-time customer data processing and back-office efficiency will enable organizations to upgrade from paper-based systems and minimize turnaround time.
5. Outsourcing of Business Processes
Organizations will need to outsource to CEM firms to stay in the game, across every aspect of the insurance service chain. The demand for fast and personalized services by consumers requires adequate workforce training, hiring skilled underwriters, and flawless policy administration. However, with the post-pandemic conditions here to stay, most organizations lack the human resources and expertise to tackle these needs.
The coming of expertise-driven InsurTech organizations brings a host of benefits including pre-trained customer support personnel and the technical infrastructure to meet changing demands. While these BPO services will be the smartest investment an insurance company can make in the post-COVID world, the challenge lies in choosing a partner that delivers services with agility and accuracy.
It is no more ‘business as usual’ for the insurance industry. David Edwards, Chief Executive of ChainThat, says,” If insurers are slow to embrace these powerful technologies, their competitive edge will disappear.” In order to stay competitive and profitable, embracing new trends must be the priority for every insurer.
Allsec delivers highly personalized and robust Digital services for the insurance industry, starting from customer support services to technical infrastructure building. Reach out to us for more information.