With the post-pandemic shift, the insurance industry is facing a customer whose priorities have changed. Here we tell you what the insurance of the future will be like.
Today the world has changed and we are dealing with other paradigms that are very different from those before the pandemic. The future of society depends, among other things, on our capacity for resilience. In the case of the insurance industry, the pandemic has brought about a clear change in demand from end consumers. This is why our industry must adapt by providing better and more ‘flexibility’ in supply and service delivery.
What will insurance be like in the future?
We know better and better what customers expect from us. If we were to predict what will be the insurance demand in the future, some of the main premises that should be fulfilled are
Simplicity: The paradigm has changed; today’s consumers want the product portfolio offered by their trusted company to be simple and easy to understand. Not only at the time of purchase but also at the time of use. In the past, products were offered with a purely technical approach. Whereas now the market demands insurance focused on human use and redesigned solutions adapted to new consumer expectations.
Immediacy and service excellence: Customers are increasingly aware of what is on offer and have clearer expectations of what their insurance company can offer them. In turn, with the proliferation of social networks, any consumer can obtain all the information, opinions, and suggestions about products before purchasing them. Therefore, if we want to retain and attract customers, quality, transparency, and expectation management are essential. Soon, all companies will build their business and processes with the customer in mind.
Added services in commodity products: Consumers increasingly value-added services in commodity products. However, these must be aligned to their particular needs and clearly communicated. An example might be: “I am in Santiago, Chile, and I remember that I have to have my car serviced this month. Thanks to the service offered by my auto insurance policy, I call the company and schedule the service of a driver who looks for my car and carries out this procedure for me”.
With this new model, is my business direct or indirect?
Today there is a big change in people’s behaviors and habits. If companies do not try to understand the challenges of insurance management in the future, they will be condemned to watch how others grow in their market with new clients operating under new mental schemes. Today, the importance of the customer experience along the entire insurance value chain is critical.
This is a message not only for companies but also for traditional insurance brokers. An example of another industry that could be assimilated is the evolution of the travel agency business versus travel sales portals. Let’s think for a moment about travel agencies a few years ago, what was the value they added? Now compare that to what we believe traditional insurance distribution chains add today.
We are not saying that brokers/agents/brokers are going to disappear, but we will likely see fewer agents in the future. Although they will be more specialized and much more professional agents, coexisting with direct insurance sales based on trust and recommendations from social networks. This is just one of the impacts that digital transformation will have on the insurance industry.
At Coldview we are preparing to take your insurance company to this near future. Learn more about the solutions we offer here.
Would you like to be an insurer of the future? Write us and we will make it happen together.
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