Everyone wishes they had insurance whenever they face a crucial problem or accident.
As a result, more and more people are moving towards using insurance to alleviate the risk of expensive or disruptive future events. Several new technologies are now hitting the market that are changing the way we work, live, and financially protect ourselves.
The insurance industry is evolving with increasing competition every day. New players enter the market, and the existing ones try to bring innovative ideas. These companies are making investments that will help them understand clients, improve their pricing, and increase operational efficiencies.
The truth is, customers have become more knowledgeable than ever before. They have complex needs and want customised offers, with older insurance buyers wanting insurance to suit their lifestyles. This is why the insurance industry is implementing new trends to fulfill customers’ demands.
Here are the trends influencing the insurance market in 2019.
1. Technology
More and more consumers are growing up in a digital world.
They are more comfortable with the new technology and how it can be aligned with different fields of life. Insurance companies are offering tech-friendly features to their customers, such as mobile phone apps and services. This generates more revenue and boosts customer engagement as they are trying to reach out to the public via texts, web, e-mail, and social media.
Customers want personalised results. With people frequently using the internet through their devices like computers, mobile phones, tablets, and cars, they leave behind digital footprints that help companies to analyse their data and customise their plans accordingly.
Artificial Intelligence is an example of a technology that is impacting the insurance industry through learning human language and adapting itself to suit the needs of a conversation. AI can be used to interact with customers to receive their feedback or deliver insights that prevent frauds
2. People Matter
As customer expectations are shifting, so are the services offered by the insurance companies in order to meet them.
New business models are being made, especially by startups on crowdfunding and peer to peer finance. The takeaway here is that customers need to feel like they are getting something in return, while insurance companies are shifting their approach to ensure these needs are met.
Customers want to feel that their money is being invested somewhere or is being used for a good, sustainable cause. As a result, traditional insurers have to prove where their customer’s money is going.
This is reinforced by counsellor and mental health experts, Thinking Families, who confirm that “the ability of brands to evoke positive feelings can have a direct impact on business outcomes. Our brains are wired to respond to positive stimuli, with ‘likeability’ able to predict how successful advertising methods are. In short, when your business creates trust and joy, you’ll see the results.”
The customer’s needs should always be given priority, and with more and more insurance companies realising this, the mantra of ‘people first’ is becoming the next innovation in the market.
3. Trust Building
This concept of building trust has emerged to promise customers that they’ll be asked fewer questions while they claim for insurance.
This has increased the probability of payment from companies which is instilling a sense of newly found trust. As a result, customers are willingly paying higher premiums with this guarantee. Insurers are now investing in areas of their customer service that lacked attention previously.
Companies offering these ‘people first’ promises are focusing on areas where other insurers refuse to go. It is necessary in this innovative climate for insurers to take risks to stand out in the market.
Providing a unique perspective, Maxiron Capital explain how they faced similar challenges in the finance industry, saying “we faced the same challenges – working against deeply entrenched opinions about our industry. For any business in the same place the key is to be authentic. Provide free value and be transparent with your goals. Use your website to answer questions and be available and own your mistakes. It takes time, but reality can erode negative perceptions.”
Improved propositions should be made based on the actual needs of customers to demonstrate that you understand and empathise with them, not simply to appear as a pioneer.
4. Rewards
Getting rewards for good behavior encourages everyone to embrace a rewarding lifestyle.
Many insurers are using technology to monitor their client’s daily activities and provide lower costs and discounts for those who exercise and eat well.
The psychological impact of rewards is confirmed by Wendy Corliss of Living Consciously who says “emotions drive all our daily behaviours. They’re why we go to the gym or get up at 6am each day. They’re also why we connect with businesses. If you make your customers happy, you get a customer who wants to engage with your business. Rewards, discounts and offers are a great way to move towards this goal.”
Applications are also being used to monitor sensible driving which lowers the risk of accidents. Bills are also reduced for customers that use energy-saving bulbs. If you install these apps and safety devices with you, most of the insurance companies are providing discounts and lower premiums. This is likely the most rapidly expanding trend in the insurance industry.
Traditional insurance companies should try to catch up to these trends as soon as possible to enjoy the improved customer relations and revenue goals. With innovative technologies and new strategies, expectations of customers have changed.
If insurance companies want to use the latest innovations to their advantage, they should prioritise adopting technological advancements. These changes ultimately create customer satisfaction and generates revenue for insurers as well.