Take this opportunity to innovate the customer experience
An emphasis on risk prevention gives insurers more ways to interact with their customers, but it also demands that brands strike the right tone in delivering that advice, long before or after a claim. As we’ve learned again and again, an experience that isn’t extremely intuitive, and that doesn’t inherently communicate value, will fail every time. Make sure your experience design team is educated in the latest design thinking, but furthermore, take extra measure to enlighten your team on the voice, tone, and persona of the brand whose experience they are designing.
Use connectivity to improve life quality
As the Internet of Things grows more robust with untold data and myriad connected devices, insurers should aim to uncover more ways they can add value to consumers’ lives. A new relationship can then emerge between insurers and policyholders: one of continual dialogue (on the consumers’ terms) that interacts not just in negative moments (e.g., claims) but in a new kind of moment – one of enrichment, such as offering insight about how their behavior can improve their life quality along with more favorable rates.
Review your capabilities and skill sets
Evolving an insurance offering means evolving the skill set of your staff, too. As technologies like telematics, wearables, and mobile capabilities become fundamental to your product, it becomes necessary to identify the gaps in knowledge that you can fill through additional training.
It also demands staffing up with data scientists or even incorporating academics, much like how insurance startup Lemonade hired Dan Ariely, the behavioral economist who authored Predictably Irrational. This is also a chance to audit your external partnerships and ensure that they can help push you forward.
Support a nimble IT operation
Developing new skills isn’t just for individual employees; it should happen at an organizational level, too. As we stated in our piece Dueling the Digital Dragon, a bimodal IT operation is extremely useful in pushing an organization toward new ways of operating. Dedicating a group within the IT department to developing new processes and making use of new technologies could, for example, enable support for real-time, interactive customer communication. Insurance CTOs will also need to craft a technology roadmap to support complex-event processing through analytics, BPM, SOA, and innovation in real-time customer experiences.
Insurers stand to benefit greatly from shifting their focus toward prevention. But ultimately, the success of prevention hinges on consumers shifting their behavior. To succeed, insurers must check themselves by never ceasing to consider the consumer perspective.
- Sharot, Tali. The Optimism Bias: A Tour of the Irrationally Positive Brain. New York: Pantheon, 2011. Print.
- Roy, M. M., Liersch, M. J. (2014). I am a better driver than you think: examining self-enhancement for driving ability. Journal of Applied Social Psychology, 43(8), 1648–1659. DOI: 10.1111/jasp.12117
- “Active Loss Prevention Promises a New Value Proposition for Property and Casualty Insurers,” Gartner, 2016
- What Is the Future of Data Sharing?, Columbia Business School Center on Global Brand Leadership, 2012.
- Insurance 2020: Turning Change into Opportunity, PwC study: January 2012.