The brand and product-focused insurance industry are now slowly transforming the way they work. Due to an increase in new competitors and customer expectations, it’s forcing the industry to focus more on a smooth, user-friendly platform to provide a digital experience to customers.
This is not an easy transformation for both the business and the customers. Traditionally insurance products were sold by agents, and the business was transaction-oriented, whereas now insurers are moving to a customer-needs driven business model. The customer expects a user-friendly environment with proper clarity and transparency. All the processes need to be smooth and hassle-free, gone are the days when people received a 30-page application form, which barely anyone understood or read. Now people want everything in their hands in a simple and understandable form and likely online.
A Changing Marketplace
To compete in the current market, where every existing and new competitor is exploring new opportunities, insurance products need to be simplified and personalised, i.e., customer-oriented.
In the past, many advisers would push products based on their commission, but with the change to the adviser space since the Royal Commission into Financial Services, the focus has shifted towards providing product awareness and an easy to understand the process.
It’s time to adopt a direct-to-consumer digital business model, and if you don’t care, you might be left far behind your competitors. In most cases, insurance companies are already selling their products directly to the consumer online. It is more convenient for the customer, as well as the company.
As an insurance company, you need to understand the customer, market demand, and try to meet their continuously growing expectations.
Digital Solutions
We live in a world where we can buy/order almost anything while just lying in our bed. Today’s customer wants a digital experience, and most don’t have enough time to visit a company and fill out a lengthy and time-consuming form. They want the product or service to be simple, easy to understand, and personalised to their specific needs.
And do you know most purchase decisions are made even before talking to the business? How? Before buying any product, people search for the available options because all the information can be found online. No matter what the business is, an online presence is essential for business growth.
Technology and trends keep changing, and those who can adapt to these new situations easily will overcome their competitors.
Benefits
What is the importance of a smooth, user-friendly, and digital platform? The major benefit of a digital solution is it speeds up the market. You can easily conceptualise, launch new products, and check return on investment. With lots of analysis tools out there, you don’t have to wait months and years to see if your product is working and if people are buying.
Another benefit is – greater agility. Consumers can easily purchase your products without any disruption; everything becomes seamless. All the information is online, and the customer doesn’t need to visit your business physically to understand your product. It makes the decision process easy, and insurance is no exception.
Mike Wallis
Mike has over 25 years experience, having spent his first seven years working as a Broker at Jardine Lloyd Thomson in Melbourne and in 2002 was transferred to JLT’s Accident and Health Department in London. For four years (2002 – 2005) Mike was a specialist A&H Lloyd’s Broker and during this time developed excellent relationships with the Lloyd’s A&H underwriting fraternity. In 2006 he returned to Australia in a senior broking position with overall responsibility for Placement Strategy, including the implementation of underwriting facilities and the various authorities granted by Lloyd’s. Mike was the underwriter at two specialist Underwriting Agencies prior to founding Aspect Underwriting in 2016.
