Reimagining the Policyholder Experience With Smart Insurance Technology
Technology has dramatically altered the way companies attract, engage and retain customers. Even “traditional” industries like insurance, which have long relied on personal relationships to sell policies, have transformed as users gain access to tools and information that help them make better buying decisions.
The task for every brand, then, is to ensure that their brand is always top of mind and to provide frictionless experiences that delight and surprise their customers along the way.
Tech Trends Are Already Re-shaping Insurance
Technology has already dramatically altered the insurance landscape and has the potential to continue reshaping consumer expectations and demands. Fortunately for insurers, insurance technology can also streamline many aspects critical to providing exceptional service and solutions.
Here are some of the most critical tech trends poised to make the most dramatic impact in the coming years.
Moving technology systems from legacy location-based servers to the cloud provides the agility and flexibility for insurers to innovate quickly. You can quickly respond to demand shifts, while also preparing for long-term changes that are rapidly approaching. Cloud computing also improves your ability to capture, store and analyze data to make meaningful changes to your products and services.
Technology brings consumers and companies closer than ever before, and it’s changing the way people interact with everything from supermarkets to life insurance policies. But as the volume of technology increases, so does the push toward a more streamlined and connected world. When important products — like life, auto and homeowners insurance policies — are seamlessly connected, it makes consumers’ lives easier. It also helps companies develop a deeper understanding of customers and predict their needs.
Consumer connectivity also enhances insurers’ ability to provide better products and services. The Internet of Things (IoT), with more than 5.3 billion connected devices in North America, offers seemingly endless opportunities to capture real-time data on everything from water leaks and break-ins to fire risk and individual biometrics.
Most insurance companies have already transitioned clerical and back-office functions to automated processes. Automation is a cost-effective way to improve services without adding overhead costs that drive up consumer prices. But automation can also improve consumer-facing products and services. For example, when an insurance carrier receives a claim for property damage, it can automatically trigger an unmanned drone to assess the damage and capture photographs and videos to assess the damage.
With the volume of information online, cybersecurity is quickly rising to the top of a list of concerns for individuals and companies alike. Building the infrastructure and networks to remain connected and still protect sensitive customer information is essential for insurance companies that want to build trust. Pepper’s PaaS (Platform as a Service) makes this easy to do with secure and encrypted data stored in the U.S.
How Insurance Technology Can Drive Positive Outcomes for Policyholders and Carriers Alike
Insurtech is not going away. Companies that are ready to innovate as new opportunities arise are going to be better position to capture policyholders’ imaginations, attract new customers and retain existing ones. Here are a few ways that insurance technology can drive positive outcomes for insurers and policyholders alike.
Put consumers at the center with a more streamlined experience
Your policyholders should be at the center of everything you do. While that sounds obvious, it’s easier said than done.
Innovative companies have a better understanding of what technologies have the greatest impact on claims management and consumer satisfaction. They are streamlining every step of a customer journey, starting with signup. Many carriers send free or subsidized kits with expensive equipment and a discount on monthly premiums to use it. For example, the Nationwide SmartRide program provides users with a 10% discount on auto insurance for using a connected telematics insurance device that shares vehicle and driving data with the company.
Mitigate top risks that drive losses for insurers and headaches for their policyholders
One of the biggest potential benefits of technology for both consumers and companies is its ability to predict and minimize risks. Consumers that engage with companies through an app, for example, can become more educated on the biggest risks to their health or property. This helps insurance carriers reduce costs significantly.
Customers who use Notion products, for example, interact with the app an average of 10 times a day, resulting in a 70% reduction in water leak-related frequency for Nationwide.
Drive engagement and retention with available data
For the last two decades, the volume of available data has grown exponentially. But just having a lot of data doesn’t improve products and services. Using insurance technology to improve customer service requires that companies use information in a meaningful way to:
- Predict upcoming changes and life events, and adjust policies and coverage accordingly
- Recommend useful products and enhancements based on specific behaviors and needs
- Identify policyholders at risk of cancellation and intervene before they leave for a competitor
- Reduce overall policy costs by identifying and mitigating risks
- Provide a more streamlined way for consumers to interact with your brand
Create Your Competitive Advantage with Pepper’s PaaS
How has technology affected insurance claims, operations, and customer experience? For companies that are implementing insurtech, the answer is: in every imaginable way. Insurers that understand how the industry will continue to shift — and are prepared to embrace innovation — will be better positioned to attract and retain customers in the future.
Discover how insurtech from industry leaders like Pepper can provide personalized and white-labeled applications designed with your policyholders in mind.
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