Insurtech Report Points to Digital TransformationPrint
By Chris Ehrlich
TYSONS, VA. — An insurtech study is offering insight into consumers' digital expectations of insurance companies.
The study is part of the 2020 "DXC Insurance Survey Report: The Voice of the U.S. Consumer."
U.S. consumers were surveyed on the insurance industry and how they interact with insurers.
The study highlights how consumer demand is creating opportunities for insurers to deploy customer-facing digital technologies across their organizations.
Digital transformation by insurers will not only help them "gain market share and boost lifetime customer value," but also assert themselves as "exemplars of a new, more collaborative concept of the insurer-policyholder relationship," according to DXC Technology.
DXC developed the survey to help insurers transform their business models and compete in a "changing, more consumer-focused market."
In the survey, the majority of respondents (87%) said they're comfortable sharing personal and lifestyle-focused data for the benefit of lower insurance premiums.
“By embracing new technologies, infrastructure and partner solutions, insurers can transcend the traditional insurance proposition to be more proactive partners in helping customers manage risk and prevent losses,” said Phil Ratcliff, VP and GM of global insurance at DXC Technology.
“Insurers are in a position to improve loyalty and elevate their brand by helping consumers understand how their products and services work and by continuing to improve the claims experience.
"The insurance winners of tomorrow will be defined by their ability to place the consumer at the heart of their strategies today."
The survey was conducted by Telsyte on behalf of DXC Technology.
Telsyte gathered responses from over 2,000 U.S. consumers 18 and over.
It was conducted online.
The study reveals consumer sentiment on both insurers and their offerings.
Insurers that can demonstrate the benefits of "going digital" will drive customer loyalty and new products and services, according to DXC.
• 45% percent of respondents are comfortable with wearable devices, and 43% are comfortable sharing the data from those devices with an insurer in exchange for benefits.
• Roughly 43% of respondents are comfortable with the insurance industry using technologies, such as chatbots and AI, to assist with insurance applications and claims.
• Among respondents 18 to 44, 43% prefer to file claims through digital channels; more than half (54%) of them believe an insurer’s app must be as easy to use as consumer apps.
In its report, DXC Technology offers several ways insurance companies can both take advantage of consumer demand for digital solutions and continue their of digital transformation:
Accelerate digital capabilities for a personalized customer experience (CX)
Insurers that provide a digital experience similar to retail and other industries can increase customer loyalty. Consumers ages 18-44 represent a key underserved market and are most receptive to digital. To tailor experiences, insurers should accelerate the use of technologies such as AI, machine learning and robotic process automation and employ solutions that improve CX as well as efficiency.
Prepare for new types of customer data and data security
Customers’ willingness to share data will change how products are underwritten, allow insurers to better understand their customers and enable the creation and pricing of new tailored products and services. Accurate data and pricing allows insurers to target new markets. To take advantage of this, insurers need to prepare for the storage and distribution of new types of customer data and increased data volume.
Build and leverage a partner ecosystem
Leveraging a strategic partner to manage and curate insurtech lowers an insurer's risks. Partner management and the curation of capabilities are increasingly important skills in an insurer’s IT department, as internal staff focuses on strategic differentiation. Insurers should take advantage of the insurtech movement to provide a variety of services to clients and distribution partners, as well as leverage software, infrastructure and cloud providers.
Commit to product innovation
Insurers should explore new types of products, such as temporary, on-demand coverage and parametric policies. Insurers should also explore new combinations of products, as customers may be interested in bundled products they'd be unlikely to purchase separately. Insurers must also simplify offerings to create genuinely digital products.
Embrace the customer relationship
Consumers’ desire for a digital customer experience is an opportunity to make the carrier-policyholder experience more personal, with more frequent touchpoints. Instead of a relationship built on one-off traditional product sales, insurers should aspire to serve as risk management and wellness consultants to their policyholders. Digital investment can help deepen the customer relationship and provide transparency.
• IT Business Edge: IT hiring difficult in insurance