3 minute read
Trends that will Mold or Break the Insurance Industry
from Strides Magazine
By William Surmon, Executive Head: Sales and Marketin
Advertisement
• Digital transformation modifying Business Processes • Diversifying Service Offerings to Meet Changing Markets • BIC shifting from Legacy-focused to Innovation focused?
The best of Insurance companies have been widely revered for their conservative nature and esteemed for their legacies. These factors have been considered by consumers for centuries while looking for the perfect insurance company. The last few years, however, have witnessed a great disruption in the industry’s way of operating due to an upcoming generation whose behavior is completely dissimilar to the previous ones. With new industries, customers, risks, and new competitors comes a new world. This new world demands new solutions.
Digital transformation is the utilization of digital tools to modify business processes. Whereas in time past the insurance industry has held fast to their ways of operations, the dawn of Insurtech companies along with COVID-19 has pushed the industry in the digitization direction. Research from Deloitte indicated that, “Digitization plays an important role in product design, product distribution and service delivery in the insurance industry.” Incorporating digital into the organization might be costly but it will save companies much more in the long run. At BIC, we have realized that digital transformation has the potential to speed up the marketing of products and service; it has already drastically reduced marketing costs through digital marketing. This has led to lower service costs for consumers and it has unlocked formerly inaccessible markets.
Additionally, diversifying service offerings to accommodate the changing markets and the threats they bring will intrigue the new, tech-survey audience your organization desires to attract. BIC has recently launched their Nkamo and A re Bue virtual offices. Nkamo allows consumers to request for quotes, submit KYC documents, apply for policies, make claim follow-ups, check claim status and rate the service. The A re Bue platform is a feedback system that permits users to provide feedback on services rendered through simply scanning a provided QR code. Another unique offering and solution offered at BIC is the comprehensive cybersecurity insurance which mitigates the rising concerns associated with cyber-attacks. With every new
opportunity brought in by innovation, a threat is expected but BIC has found a way to optimize the threat brought in by the technological age. In the same strand of thought, organization should consider personalizing their digital platforms for a more enhanced consumer experience. Personalization is yet another offering that is reshaping the insurance industry. It is also an arena where budding insurance companies are severely competing. Customers now have information to compare prices, compare products and even observe an organization’s reviews to make decisions on which organization trumps which. This means that providing them with convenient and superior service is what will truly distinguish an insurance company. As a sales and marketing executive, I always advise our team that customers are aware that organizations are collecting their demographics, their requirements are that these are used to create a seamless and customized consumer experience. Tailoring products and services according to individuals’ demographics and using their names when addressing them on their accounts in the website are examples of what could truly distinguish an organization and put them miles ahead of their competition. In a more radical thought process, BIC has had to truly consider a complete shift in their company culture: whether to shift from legacy-focused to innovation- focused. Digitally- inclined insurers and the needs of the modern customer are putting immense pressure on the more conventional insurance companies. If organizations fail to adopt digital transformation initiatives, their futures will be rather bleak. The consumers they once had and thrived through have changed, so must they. The direction the insurance industry is heading in has truly been hastened by the pandemic and the pressure from mounting consumer needs. The only way organizations will stay afloat is when they become intentional about investing in their digital platforms and enhancing their digital presence. This decision and how thoroughly it is implemented, will either mold or break the insurance industry.
