Technology as an enabler for a more customer centric insurance industry

The 21st century is characterised by rapid technological advances. The rapid growth in digital and communication technologies is driving relentless change in all industries, which could improve customer centricity.

Old ways of doing business in the insurance industry are constantly being turned on its head as technology enables newer, more efficient and cost-effective processes to be introduced.

Our industry is undergoing many changes, most of which are driven by pressure on margins, changing customer behaviour and rapidly advancing information technology. By leveraging technology properly, insurers can increase intelligence and effectively use advanced information technologies to improve their processes to better service customers

Creating uniqueness

Technology enables the creation of an integrated, multi-channel servicing capability that provides a new interactive and more responsive relationship between insurers and their brokers, customers, suppliers and employees.

Technology also affects the way various policies are underwritten, allowing insurers to make sound recommendations to customers when surveying their assets to be insured.

To leverage the advantages of technology fully, it is important to have robust information security measures in place, which protect all parties, involved in the insurance value chain.

Multi-channel servicing

There is a clear need for a seamless ability to interchange platforms and channels; whether customers choose to engage with insurers on a face-to-face basis, via their intermediary, through customer contact centres, on email, on social media or via apps. To remain competitive, insurers have to service all via the channels they prefer to use.

Integrating all role-players in the value chain to be customer focused and produce the required customer experience will become increasingly important to build customer loyalty.

Improving underwriting

Surveys are a key part of the underwriting process to clearly identify the risks clients may be exposed to. This will enable insurers to balance their losses. It plays a pivotal role in underwriting practices, and insurers rely heavily on this underwriting function to assess potential risks to clients.

In the drive efficient processes, insurers have centralised their surveying functions, standardised processes and services so that they only take on desirable risks and therefore better protect current and future customers.

Information security

For insurers to fully benefit and exploit these technological advances, it is important to protect all information assets. Although legislation is driving compliance, the importance of protecting information assets is as vital as protecting physical assets. As more IT-enabled capabilities are introduced, it will require that insurers are explicit in protecting customers, brokers and employees so that they do not expose the wrong information to the wrong party. It is important to remember the primary role of technology is to enable the broader business strategy.

Insurers need to be nimble and agile and have shorter turnaround times so customers can benefit from the rapid improvement in technology. The winners will be those who embrace change and capitalise on any opportunity to advance customer centricity through technology.