New business models and technology put the insurance sector in check
The current work context in the field of insurance companies poses various challenges that force companies to rethink their relationship with the client , to implement new mechanisms to carry out their activity and to open alternative communication channels to the current ones both with their clients direct as with the indirect.
To understand the challenges that insurance companies face , we must first think about a series of issues that are generating great concerns among companies and that we can articulate around six sections:
- The business message: How is it spread? Are you reaching the right people at the right time?
- The product : does it meet the customer’s requirements? Is it better than my competition?
- The service : how do I provide it? What added value does it bring?
- Personalization: can I adapt to the circumstances of each consumer? Do they meet their needs?
- The customer experience: is it homogeneous and crossed in all channels? Am I able to surprise you?
- Satisfaction: can I improve loyalty rates? What about recommendations?
Once we have answered these questions and have a clearer picture of the situation in our company, let’s look at the five challenges we must face:
1. Business models
We are facing a new generation of consumers that not only includes young people, but also all those who have evolved in the heat of new technologies and almost unlimited access to information. These new generations represent a new demand and present a new way of consuming.
The collaborative economy , pay-as-you-go systems or micro- payments are just some examples of this. These changes highlight the need to propose alternative and innovative approaches on how to manage business.
The transformation of business models inevitably brings with it a change in the way of carrying out the rest of the company’s processes. Redefining the distribution of products and services represents one of the most important. We can divide them into two large areas: direct sales and indirect sales . In the first case, the opening of new channels prevails along with the implementation of new tools . In the second, it is about looking for strategies to face the increase in competition.
Of course, these changes are also reflected in technology. Improving competitiveness and efficiency without forgetting the quality of service are the main arguments when investing in innovative technologies. The automation of processes, unattended evaluations or work with new data sources for its use in the knowledge of the client and the news.
Technological changes have not only reduced entry barriers, but have also opened the door to new ways of offering the products and services of the service sector. The so-called InsurTech take over from the already well-known Fintech, promoting the arrival of new players to the sector. Added to this is the tendency for former partners to become competitors.
Omnichannel and customer knowledge have become two key pieces to build loyalty in the insurance sector . The consumer or the insured demands to receive a homogeneous and crossed experience between all the channels.