What Makes Insurance Technology So Special?
Historically, the insurance industry is characterized as aging and highly concentrated, which is cited as reason for a lack of innovation in both product development and customer care. But in the last couple of years, it’s made some of the longest strides of any industry we know.
The future of insurance now looks bright and competitive, thanks to the emergence of new information, and technology like new traffic cameras, self-driving cars, drones, and smart homes. These things, and how all of them pertain to the Internet of Things (IoT), are already enlivening the field, and the potential appears limitless.
This growth comes with its own particular set of challenges, though. As we adopt progressively safer vehicles, regulated roads, and more fool-proof methods of avoiding catastrophe, insurance premiums are set to go down universally. Providers will be left to rely on retaining the volume of their clientele for profit more than in the past.
The good news is that this is another area where innovation is taking place. While lower risk drives down premiums, the business world at large is also increasing the emphasis on customer retention, locking in on their biggest missing puzzle piece: customer-facing communications.
Most central to customer-centricity is how an insurer’s availability affects a customer’s autonomy. Digital migration is happening at both the business and customer ends. More customers want access to their providers around the clock, and they want to control the conversation. In response, providers are implementing automated assistance for their call centers, customer profiles are being stored in the cloud, and communications are being delivered by different channels according to customer preference.
It’s no longer new for companies to offer customers the choice of communications formatted for mobile, desktop, or print. But one emerging technology is dynamic documents with interactive data visualizations. Not only do customers receive the information by the mode they like, they can also digest it how they like. Their interactions, as they hover over colorful charts and graphs, can be monitored to improve future communications with targeted ads and more appealing displays (see Ecrion’s Customer Engagement Management layer).
Internet of Things
Speaking of usage data, another move toward customer-centricity features installing software into items that may not have been considered before. This also provides for a company’s virtual Omni-presence with clientele. Vehicle tracking devices can adjust premiums in real time. Heating systems and washer-dryer setups can potentially help underwrite home insurance policies. The amount of data captured by a smartphone alone is still not fully tapped. These are things that translate into lower rates, but ultimately to higher Customer Lifetime Value when implemented and applied in the right ways.
This is the other side of interactivity – not just how it enhances the customer experience but also how it improves your experience of the customer. With greater options for interactivity, you can ultimately know customer better and create more specific personas, continuing to develop products and messaging tailored directly to their specific wants and needs.