What if you could hit the "sweet spot" when it comes to your insurance customers?
The insurance industry stands on the precipice of profound change. Not all of this disruption is digital, demanding customers, personalisation and new competitors are transforming the industry. If companies and brokers don't keep up with the latest trends, they can end up losing their customers to the competition.
Adapting to the external environment is key to keep your business on the cutting edge of insurance. By studying these top insurance industry trends for 2020, you won't just stay in the insurance game: you'll win!
Customers’ knowledge, needs and expectations have rapidly changed in the past decade. Back in the day, many consumers favoured "one size fits all" insurance models. This involves a single cost from a single provider that covered multiple consumer needs.
Now, key demographics such as Millennials are holding off on things such as purchasing a home. Insurers must adapt to these changing demands. That's why service models that cater to specific demographics are becoming more and more prevalent throughout the industry.
Customers have many choices now, including peer-to-peer insurance models. Any company that wants to stay competitive must embrace innovation and growth by developing new models for their consumers.
Time to Partner Up
Many insurers and brokers began as fiercely independent. However, success in the modern world of insurance means embracing a simple truth: no one will succeed entirely on their own.
In some cases, this means partnering up with peers. Smaller companies that merge their resources and brands can effectively take on much larger companies while expanding their reach.
In other cases, it means partnerships with various InsurTech corporations. Think of this as a game for the future. Rather than rely on stagnant internal innovation, companies are bringing in outside innovators to really shake things up.
However, the need for these partnerships also means those in the insurance business need to take their negotiating skills to the next level. Otherwise, they'll be left in the dust of rival companies who know how to "work and play well with others."
Rise of the Machines
Artificial Intelligence (AI) and automation have become an increasing presence in all of our lives. And now, these 2 factors have become major forces within the insurance industry.
On the simplest level, AI is here to save time for both consumers and providers. AI can help minimize the number of brokers while also minimizing potential cases of fraud.
AI bots are also taking centre stage when it comes to things like insurance claims. Such bots can do everything from answer common questions related to the insurance company all the way to assessing and paying out claims.
This has caused a bit of a learning curve for many providers. However, these innovations integrate nicely into the digital solutions that many demographics now prefer.
Digital Claim Tools
Speaking of digital, one thing that has become common is digital claim tools. These are tools such as apps that make it easier for a consumer to file a claim.
Ultimately, this development has made a profound difference for consumers. In some cases, their claims can be paid out in only a few seconds! Such developments have, however, created a bit of an "arms race" between providers to offer better digital tools to potential customers.
Remember all of that enhanced data collection we mentioned earlier? Well, all of the data in the world is useless if you don't know what to do with it.
That's why insurance company analytics has evolved in a number of ways. Such analytics tools allow providers to analyze consumer data and make necessary adjustments to their products and services.
For example, data allows providers to further segment their customers into discrete categories. Those same providers can then offer individualized insurance packages to each segment, increasing the provider's versatility as well as their profits.
Providing insurance and providing customer service used to be considered as very separate things. This thinking has shifted, and now improved service is at the heart of a truly customer-centric approach.
Forget technology: customers are what truly disrupts any given industry. This is because as customer knowledge grows and demographics change, the exact needs of those customers will change and evolve.
And that is why third-party administrators have become so important to the entire process.
These TPAs partner with insurers and brokers to create the kind of customer-centric environment that defines brands and creates fierce consumer loyalty.
Technology has become an increasingly important part of insurance. Unfortunately, there is a big difference between knowing about things like blockchain and knowing how to efficiently and effectively use it.
The same holds true for technology such as analytics and cloud computing. Such disruptive tech can be a real game-changer, but only to a company that understands the game. That's why more insurers and brokers are partnering with tech-savvy TPAs.
For insurance companies, the gains are obvious: they get the kind of technological expertise that helps them cater to customers and outpace the competition.
Furthermore, third parties can help line up customer needs with insurance innovations. This goes back to the need for a customer-centric approach at every level of organization.
Blockchain and Beyond
As we noted, blockchain--once little more than a buzzword--has become the future for the insurance industry.
And blockchain is great for things like data security and data management. Customers love companies that go out of their way to protect consumer info.
However, don't forget that what customers always want is "the next big thing." They like to see that your organization is constantly developing new solutions to fit their evolving needs.
This further highlights the need to partner with a good TPA. Such third parties can provide insight into both technology and consumer needs that help you beat the competition to the finish line in terms of trendy new products.
Insurance Industry Trends: Roaring Into the '20s
Now you know more about these evolving insurance industry trends. But do you know which company can take care of all your insurance claims management needs?
We partner with insurers and brokers to help them respond to emerging customer needs. To see how we can help evolve to meet those unique customer needs, simply contact us today.