The Insurance Sector is facing challenges like never before in it’s long history, and the digital landscape within which it must now work is moving apace. Traditionally, the risk averse business model has always favoured large companies, usually those operating in diverse sectors, to spread risk. As the insurance sector continues to encounter difficulties, in terms of learning to adapt to, and cope with traditional challenges of a change resistant highly regulated financial sector, the online challenges are also increasing.
Now, the insurance sector is also experiencing challenges with new entrants, challenging the very way the sector does business, and demanding a new user experience for customers, as well as a new digital ecosystem for corporations.
For so long, the insurance industry has:
- Been dominated by big players
- Collected hundreds of years business history
- Completed Mergers & Acquisitions
- Risk averse
- Highly regulated
- Low margin process driven
- Profited from sale of policies and investment of funds
Our recently published white paper discusses all this in more detail, but in terms of this blog, we can at least discuss things with an overview.
With an ever-evolving digital landscape, as well as an ongoing growth within the insurance sector, the challenges are undeniable, and the need for a digital solution in this business, as inevitable as it is necessary. Customers want and expect more from their UX, in terms of service and products,, than ever before, in a time when it is even easier for them to research and switch to other companies. Also, as the user demographic changes, and essentially becomes more online-savvy, the need becomes more urgent.
Some research shows that, by 2020, 35% of the UK workforce will be millennials and, as we know, that means online transactions and experiences become the main focus for many businesses.
Technology, and the provision of a superior user experience is both an internal and external challenge to the sector; Externally, InsurTechs, new tech-savy entrants to insurance market, that use technology to give strategic advantage are bringing new products, services and ways of engaging with their customers. Internally, the sector has a legacy, which could make it difficult to change their technology infrastructure and ecosystem, something which is hindering the sector's ability to respond to changes in regulations. let alone changes in the way the business operates online.
The customer journey includes several stages:
- Attracting customers
- Choosing supplier and product
- Applying for insurance
- Making a claim
- Making a complaint
Put simply, the insurance sector user experience must allow the customer to achieve what they want, and to achieve it easily and efficiently, in an engaging manner that helps build the brand awareness and increases customer loyalty. Digital channels must engage the customer at all stages of the customer journey, and constantly evolve and improve. You have to pay attention to customer engagement with your digital channels, and either build internal capability and/or an on-going relationship with specialist companies.
Having delivered digital solutions for global insurance companies, including AXA and Prudential, Appnovation is both aware of the need for these solutions, among many others, as well as being experienced in delivering them.
Our approach is to not only uncover the necessary solutions, but to ensure that we consider the needs of your company, your clients, your stakeholders, as a guide to what those digital solutions should be. Insurance is a results-driven business, as is our sector, making us a true leader in providing digital solutions for the insurance sector.