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Life Insurance - Life Insurance: Data analytics for customized solutions

Insurers will have to become digitally adept and offer customized solutions that are relevant to millennials’ specific life stages and savings-cum-protection asks.

There is no denying the pandemic has been a true catalyst of transformation in every sense—economic, societal, and personal. For all the uncertainty it posed, it is clear already the future is digital. The scale and speed of digital transformation witnessed globally has proved that the digital journey is not a destination, but an evolution. There are two questions that businesses should always be asking: Are customers demanding more from the business? How can you unlock higher
value with a more digitally agile operating model?

The insurance industry is growing at a steady pace accelerated by a rise in awareness and subsequent demand. But this growth is also fueled by significant investments in delivering end-to-end digital customer experiences, flexible products, and most importantly, radical customer obsession seeped into every single process.

Data leads to innovation
The evolution of experience stems from the intelligent use of data insights and analytics to inform decision-making. Access to data can help firms reach customers more efficiently. Using improved analytics skills and Artificial Intelligence (AI)-based customer modeling can be developed and deployed across various customer life stages. This can help gain a thorough understanding of the customer pulse. An example of this is using data analytics with an existing customer database to create pre-defined personas with less documentation. Queries on life insurance policies types, personal details, work experience, and past life insurance experience can help develop potent ground to innovate and rethink the policy approaches.

Digitally harness the power of flexibility
Insurance often faces the argument that there is relatively less scope of personalization as compared with other goods. Customers acquire their insurance, often through an agent or broker, with the products being very similar to each other. Instead of a one-size-fits-all strategy, insurers must use the digital insurance process to offer customized insurance solutions. I believe we have changed the conversation with today’s customer moving away from ‘why insurance’ to a ‘which insurance’ mindset and one needs to address the question with on-demand, all-in-one lifestyle solutions, personalized basis usage-based telematics that offer relevant, flexible offerings.

Specially attuned to the organic needs of the millennial customers for whom customized offerings are an absolute ask, insurers will have to become digitally adept and offer solutions that are relevant to their specific life stages and savings-cum-protection asks. Another great way to ensure that the right consumer need is addressed with the right solution is to bring creative startups into areas of play that can help with co-innovation.

Invest in more effective servicing
Today’s consumers do not shy away from changing brand loyalties if a company doesn’t actively anticipate or address their wants. The value at stake is significant. The fundamental challenge many companies face is getting the organization moving, and moving at speed to ensure proactive improvements in redesigning customer journeys. Agility can be the key, and now every lever needs to be perfectly in place to roll out enhancements, plan for continuous rounds of improvements, always searching for better efficiency and speed.

In the end, remember that every interaction with the customer is a way to live up to your promise. Think of your customer experience as a continuous journey, technology as accelerators, and transformation as a fundamental opportunity.

Source : Financial Express back