Digi this, digi that… the future of insurance is ‘digital everything’

Delving into the future of insurance, FAnews hosted a live webinar, sponsored by Genasys, where esteemed speakers spoke about the future of insurance, how Insurtech is no longer a value add, but a given and how digital is changing everything.

In the FAnews November edition we shared a summary of the key highlights from the presentations. Herewith is the full article of the event.

Clutching onto the ways of the past

On the topic of the future of insurance, Andre Symes, Co-CEO of Genasys pointed out that the insurance industry has been notorious for clutching onto the ways of the past. 

Looking at where insurance is going, he said… partnership, collaboration and choice have become very important. 

Symes used dinosaurs, cell chargers and paint palettes as an example of why adaption and adoption of/to technology is so critical.

“What do dinosaurs, cell chargers and paint palettes have to do with technology eco systems? It’s not the strongest of the species that survives, nor the most intelligent that survives. It’s the one that’s most adaptable to change,” he said.

“When we speak of eco systems and partners, we must ask ourselves, why have partnerships and collaboration become so important?  That’s where dinosaurs come in. Charles is often misquoted. But its still super valid. Dinosaurs were evolving, but when a major event like an asteroid hits, simple evolution is not quick enough. In more recent times and in business, we can obviously reference COVID, and step changes are needed,” he added.

“When COVID hit, nobody had the luxury of taking their time to evolve their monolithic core systems into the next thing, the ones who could act fast, leapfrogged their competitor. So, why has the partnership and ecosystem approach become so important? Technology options give us the ability to adapt or pivot quickly. Technology eco-systems give us choice, choice gives us options to adapt or pivot quickly and being able to adapt quickly, future proofs us,” he emphasised.

“Why have partnerships and collaboration become so important?  Because we simply cannot build solutions for the unforeseen, but we certainly can architect for it. The more we future proof our businesses, and the more we engineer in agility, the more we reduce the risk to our businesses for future changes,” he stated.

“So, how do you ensure that your business can adapt and be able to play in this new collaborative environment? Let us look at an example. There was a phase, for example, when we used adapters, often referred to as middleware in tech, but only when we started adopting universal standards like USB, Bluetooth, Wi-Fi etc., did it make plugging in new devices more feasible and convenient,” said Symes.

So, how do we cater for this?

“You need Application Programming Interfaces, a clear vision of your roadmap and internal change management.

“This is where the art of choosing the right partner comes in,” he said.

When choosing eco-system partners, Symes said you need to ask the following questions:

• Are they going to help your customer?
• Are they solving a business problem?
• Are they going to collaborate?
• Who else is in the eco system?
• Is there a technical fit?
• Is it financially viable?

“With the right core and partners, you have options! So, back to dinosaurs, cell chargers and paint palettes… don’t be a dinosaur and become extinct but adapt. Like the USB cable and chargers (adopt – so you become more feasible and convenient), and lastly, have a vision and paint your unique offering,” he concluded.

No longer a value add, but a given

Mutoda Mahamba, CEO and Founder of Solvency Insurance then emphasised that Insurtech is no longer a value add, but a given.   

“History has shown us that the “too big to fail” of the past, have indeed failed. We put a spotlight on why companies that are grappling with artificial intelligence, the “internet of things,” and implementing digital platforms, will ultimately fail,” he said. 

“Looking at Artificial Intelligence trends shaping the insurance industry, firstly, we have the explosion of data from connected devices (existing devices joined by new, growing categories and new data created, allowing insurers to understand their clients more deeply). Secondly, there are open source and data eco-systems (data can be shared and used across industries and public and private entities will come together to create ecosystems), and thirdly, there are advances in cognitive technologies ( “active” insurance products tied to an individual’s behaviour and activities, new product categories and engagement techniques),” said Mahamba. 

Insurtech, no longer a value add but a given has an effect on distribution (purchasing insurance is faster, usage-based insurance (UBI) products proliferation and agents transition to process facilitators and product educators), underwriting and pricing (automated underwriting, supported by a combination of machine and deep learning models, usage and a dynamic, data-rich assessment of risk, and enables consumers to make decisions about how their actions influence coverage, insurability, and pricing) and claims (more than half of claims activities have been replaced by automation, IoT sensors and an array of data-capture technologies, human claims management focuses on a few areas: complex and unusual claims, contested claims). 

In terms of adaption to Insurtech, Mahamba said, “get smart on AI-related technologies and trends - the Board and Senior Leadership Team should in building a deep understanding of AI-related technologies, with pilots and proof-of-concept (POC) designed to test not just how a technology works but also how successful the insurer might be operating in a particular role within a data- or IoT-based ecosystem. Develop and begin implementation of a coherent strategic plan that touches operations, talent, and technology and outlines a road map of AI-based pilots and POCs. Detail which parts of the organization will require investments in skill building or focused change management. And lastly, create the right talent and technology infrastructure - insurers must make measured but sustained investments in people, with a unique mix of being technologically adept, creative, and willing to work at something that will not be a static process. Identify external resources and partners to augment in-house capabilities that will help carriers secure the needed support for business evolution and execution,” he concluded. 

How digital is changing everything

In her keynote, Shelley Walters, CEO of The Sales Counsel, addressed how the move from office work to remote and hybrid work has brought massive challenges and, along with it, opportunities for differentiation. While this change has meant an enormous change in insurance and insurtech, we should not underestimate the impact that the modernisation of the workforce has on our client engagement. 

According to McKinsey, 75% of B2B buyers now prefer remote, human to human engagement, and according to Gartner, one extraordinary experience can raise your customers' expectations of your competitors. 

Shelley emphasised that in a highly regulated and commoditised environment, how you sell is more important than what you sell, or the price you sell it at. This is important to bear in mind when you consider that client expectations are a rising. 

Looking at the 2020 research conducted by Landmark; the pressing questions for the financial services sector were/are as follows: 

1. How do brokers, advisers and planners keep up with the volume of enquiries and communications;
2. How can they protect their base from an economic recession or competitors;
3. How can they effectively conduct technical, financial and emotional conversations on the phone or a video call; and
4. How can they establish relationships with new clients, many of whom they have never met. 

What are the challenges of engaging with the connected client? Walters said, “It is different… technology enables remote face to face meetings, but it alters the dynamics. We sit in different regions, it can feel artificial, time moves differently online, there are fewer opportunities for casual connection, keeping the conversation on track can be a significant challenge and technical issues can derail your meeting at a moment's notice."

Engagement is also more challenging. “There is lower engagement, higher levels of distraction, key decision makers may delegate remote sales calls to junior contacts, people are more impatient, more disagreeable, less likely to share scepticism and challenge viewpoints. It is harder to facilitate consensus. It is less collaborative, less conversational and customers' drop off',” she said.

There are eight ways to elevate your remote client engagement, according to Walters. These include:

1. A professional set-up;
2. Meeting management;
3. Tools of the trade;
4. Stakeholder engagement;
5. Improving your pitching skills;
6. Delivering data driven engagements;
7. Social engagements online; and
8. Doing more of what brings in revenue. 

Here is how to elevate your online client engagement, according to Walters:

• STEP 1 Appreciate – “I appreciate you taking the time to join this call.”
• STEP 2 Agree on time – “We are scheduled for 60 minutes; does that still work for you?”
• STEP 3 - Align to the end goal – “By the end of today's call, I would like to know more about your requirements and what you would see as the next step for your organisation.”
• STEP 4 - Agenda - Communicate a narrowly scoped agenda with few (er) defined objectives, to ensure that everyone is getting the impact they expect from the call.
• STEP 5 - Summarise - Revisit what was discussed in the previous meeting, so everyone can connect the dots.
• STEP 6 - Connect the wagons - At the end of the call, summarise the discussion, confirm that the end goal agreed at the onset of the meeting has been achieved and leave a positive last impression. 

"Prepare engagement for all participants. Be interested rather than interesting. Uncover opportunities to relate and connect. Weave acknowledgement into your engagement and invest in relating efforts outside of the meeting. Command the virtual room. Maintain structure, adapt to client needs, be clear and specific, keep dialogue short and keep the dialogue interactive. Use nonverbal behaviours to energise and engage. Be mindful of your facial expressions and smile. Take ownership of the engagement and practice and dry run your important meetings. Finish strong… don't run overtime, clarify and align, gain commitment, confirm the next steps and follow up with selected, relevant buyer enablement content. And lastly, optimise virtual engagements, test your technology and other equipment, plan engagement for all attendees and manage your remote environment," she concluded.