Change and uncertainty are to be expected in today’s world, but their impact on the Property & Casualty (P&C) insurance sector continues to intensify. Right now, rising inflation, low interest rates, increasingly complex regulation, cyber and climate risk, and evolving customer expectations are all issues insurers need to consider in their effort to remain competitive.
In this article, we’ll explore more about what the modern insurance customer expects and some strategies you can implement to position your firm for success.
What Does the Modern Insurance Customer Want?
The Human Touch
We all know that the insurance industry is increasingly driven and enabled by emerging technologies. Big data analytics, machine learning, and IoT technology give P&C players new levers to drive efficiency, improve cybersecurity, and expand their capabilities across the business.
However, the primary driving force behind any technological investment and enhancement needs to be the customer experience.
Specifically, the focus needs to be on streamlining processes through intelligent automation while still offering customized, in-person service where it’s needed and preferred.
Products and Services Tailored to Their Demographics, Needs, and Preferences
Following on from our previous point, insurers need to take a 360-degree view of their customers and be cognizant of their unique lifestyles, priorities, and buying patterns.
For example, today, we know that Millennials and Gen Z are the dominant buyers of insurance. Their lifestyles and purchase patterns differ vastly from those of older generations. As such, they have very different insurance needs and expectations.
- They have unique preferences when it comes to the value-added products they’ll buy.
- Their expectations for personalized underwriting are extremely high.
- Your ability to manage their portfolios by leveraging new data sources such as sensors and other IoT devices (such as driver performance and vehicle maintenance, thermostats, smoke/CO2 detectors, video doorbells, and home security devices) is taken for granted.
Another baseline expectation is the use of digital payment apps. Insurers need to support a broad array of digital payment options for both premium payments and claims reimbursements.
In our digital economy, the process of buying products and services is becoming increasingly immediate, frictionless, and hybrid.
In days gone by, insurance was sold, not bought. But the digital era has seen the rise of what’s known in the industry as “embedded insurance.”
Embedded insurance essentially bundles insurance coverage or protections within the purchase of a related product, service, or platform. With this model, the insurance product is offered as a native feature rather than sold independently to the consumer.
We’re continuing to see embedded insurance partnerships between insurers and other industries emerge. Established commercial arrangements already in place include those with GM, Ford, Tesla, SoFi, Petco, Outdoorsy, Airbnb, Uber, Intuit, and Zipcar.
As we move through 2022, technology and innovation – without forgetting the all-important human touch – will be mandatory to adapt and survive. Is your insurance business ready?
The Insuresoft Advantage
Insuresoft’s goal is to position insurers to navigate the increasingly complex matrix of customer expectations through digital innovation. We work with our clients to deliver the personalized experiences their customers want today – before they demand them tomorrow.
Our all-in-one enterprise software solution is ideal for both personal and commercial lines. It combines core policy processing, digital engagement, and intelligent data to help you navigate the many challenges associated with insurance quoting, compliance, and management of FNOL services.
- Our track record of 100% implementation success is what truly sets us apart. Every client that has signed a contract with us has moved to production.
- Our Diamond Platform combines core policy processing, digital engagement, and intelligent data to advance each insurer’s mission. It can be implemented as a suite or one component at a time.
- It’s built on a cloud-native architecture to reduce cost, optimize scalability, and support faster release cycles while easing the management burden on internal IT resources.
- The Diamond Platform footprint spans 50 states with over 375 modules in production.
- We’re proud to have received a 4.8 out of 5 average rating from clients rating us with Gartner.
- The nation’s best rely on us. Over 50 P&C insurers trust the Diamond Platform.
- Our team knows the insurance industry, and our people have an average tenure of 11 years at Insuresoft.
Ready to learn more? Contact us today.