In order for companies to retain their competitive edge in an increasingly demanding industry, they must adopt cutting-edge technologies and innovative digital processes.
From purchasing and marketing to management and sales, digital transformation is changing the insurance market. In order for companies to retain their competitive edge in an increasingly demanding industry, they must adopt cutting-edge technologies and innovative digital processes. Accordingly, Forrester claims that, in order to stay ahead of the curve, businesses must be digital at their core. Continue reading to discover the impact of this transformation on the value of services offered by insurance companies, the customer experience and, consequently, customer loyalty.
A focus on digital solutions
The leading insurance companies of tomorrow will have to focus more on solutions than on their products.
In this regard, delivering effective solutions ties in closely with the application of digital tools, which enhance communication and encourage customer engagement.
Today, the apps and websites of some major insurance companies include online content such as videos and questionnaires to inform customers of the risks they may face. The use of such digital tools also ensures that the company remains at the forefront of the sector.
Additionally, some insurance companies use the data they process internally or through third parties to contextualise and personalise their services. This saves them time, money and effort in the long run.
Finally, as McKinsey points out, many customers value self-service features which allow them to access information in real time. For example, when customers are able to check the status of their interactions themselves, this both streamlines the waiting process and frees up employees to focus on more urgent tasks.
The power of partnerships
As this sector becomes increasingly competitive, insurers cannot afford to act independently. Instead, they must partner with other leading companies in order to gain and maintain a competitive edge.
In fact, according to IMAA, almost 70% of companies in the sector predict that, in the future, innovation will be characterised by partnerships with third parties rather than internal efforts. A good example of this is Ping An, a Chinese insurance company that acquired Autohome – an online car-buying platform. As a result, when customers browse Autohome’s portal for a car they want to buy, they can also purchase insurance directly through Ping An.
Such strategic partnerships foster broader growth, drive innovation and open up new sources of income. In the words of Gary Reader, Global Head of Clients & Markets at KPMG, ‘Striking a new partnership needn’t mean starting from scratch. It’s about learning from both traditional competitors and new disruptors. And it’s about shamelessly borrowing best practices and new ideas from outside the insurance sector and its traditional allies’.
Adapting to the technologies of the digital age is key
Today, insurers must learn how to make the most of the benefits that digital transformation can bring. If insurance companies know what they’re doing and implement the right tools, innovative technology can improve both their services and their customer experience. This will also help to differentiate next-level companies from their competitors.
On 29 April, redk will be holding an exclusive live interview with Anna Witteveen, Head of Product at i-surance AG, one of our most valued customers. The event will last 45 minutes, during which we will explore how i-surance AG has used Zendesk to implement an omnichannel, customer-centric service for both their B2B and B2B2C needs. Tune in to learn how to take technological integration one step further in your organisation.
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