The Essential Business Growth Strategy That Insurers Need to Know
The Essential Business Growth Strategy That Insurers Need to Know by Maurice Collins
We’re all aware that we live in a digitally driven society. And for insurers, that means dealing with a new breed of customers and brokers. Today, your constituents have little to no tolerance for conventional practices.
Unfortunately, sales and service channels haven’t kept pace. In fact, only 7% of insurance services are available online. In order for insurance companies to increase the volume of premiums and increase revenue, they have to meet ever-evolving digital demands.
Without the right multi-channel and multi-device service and support channels in place, insurers risk alienating constituents and losing business opportunities. In fact, 50% of your customers could be lost over the next 5 years if you fail to digitize.
Enabling stronger digital experiences is an essential component to meeting service and support expectations. And while price is perceived to be a key factor in customer retention, organizations are finding that loyalty stems out of the level of convenience offered. In fact, people are willing to pay more for better service. But it starts by identifying ways to provide digital solutions to enhance customer service.
And there are two sides to customer service: enabling customers to be served and empowering your team to better serve. You need to manage both sets of expectations and offer the right digital experiences that help achieve the needs of both ‘customers.’ For inspiration, take a look at these examples showcasing how some of your peers solved these business issues.
Creating a digital experience that simplifies customer service processes:
A leading UK insurance group uses a new portal that allows customers to independently change their policy details and requires the broker who wrote the policy to approve the changes before they are executed. If the changes are approved, an automated check determines if there is an adjustment needed to the policy premium; if yes, it will retrieve the policy and edit details. The portal will then send new documentation to the insured.
Creating a digital experience that reduces underwriting turnaround time:
Arch Re Facultative utilizes a custom Program Portal, which allows the team to configure new reinsurance programs based on their clients’ unique characteristics and pricing structures. Now, once a program has been created, the respective underwriters and their managers have access to an array of functions through the portal, giving them a one-stop shop for management and processing.
Like I mentioned before, identifying the right portals is the first step. Delivering these solutions expeditiously and cost-effectively, however, is what will set you apart from your peers. It’s time to find a faster path forward.
Transforming your ideas into applications
To cement your position in the industry and attract new and retain existing customers, those innovative ideas that never come to fruition need to be executed and unveiled as soon as possible. Insurers need to rapidly develop new customer service and support portals to effectively engage their customers and retain customers.
But you’ll need a host of new applications that speak to a myriad of digital experience demands. The following five steps will help you understand the extent of your portal deficit, organize resources across the business, and test a new approach centered around rapid application development. Rapid application development can accelerate your portal development and is praised by a number of insurers because users across business and technical roles are able to collaborate throughout the development process.
- Assess your needs: It’s likely that you already have a list of new portals that you’d like to deploy, but take a step back to understand the greater need across your organization.
- Look for quick wins: Identify processes or interaction points that will offer the greatest return by digitizing first.
- Create a fast lane: Recognize the differences between your business-led projects and other existing development projects and strike a balance between managing both models.
- Think minimum viable product (MVP): Identify the essential components you wish to test and address any other components based on the order of their priority to the strategic project goal.
- Consider re-usability: Consider a third-party partner in modern development platforms that provides rapid application development.