Other parts of this series:
The second trend identified in the Accenture Technology Vision for Insurance 2019 report is all about getting to know the consumer. The rise of data collection in the post-digital era provides opportunities that were previously unthinkable. Interactions with digital tools and the internet of things create an identity for every insurance customer––and unlocking that information is key to understanding the next generation of consumers.
Data will be critical not only for this, but also for delivering rich, individualized, experience-based relationships in the post-digital age.
I wrote recently about the power of data to unlock value in disability claims, but today I want to explore how data will be key not only to understanding the next generation of insurance customers, but also to developing rich, individualized, experience-based relationships in the post-digital age.
THE VALUE OF DATA
Digital technologies are now so integrated into people’s lives that they have become ubiquitous. Whether it’s a smartphone app, wearable technology, an online platform or any number of other touchpoints, consumer behavior is helping companies create individual identities––and insurers are using those identities to create a new generation of offerings.
Digital data provides insurers the opportunity to play an expanded role with individual consumers, as a risk coach or lifestyle advisor, for example, so that they can help customers to reduce their exposure to risk. The potential of this can’t be overstated. Preventing a claim before it happens is one of the most fascinating and valuable aspects of data in a post-digital age, with far-reaching benefits for all parties.
USING TECH TO GROW THE MARKET OF ONE
Forward-looking insurers are taking their first steps with technology identities to personalize their existing product and service offerings. As consumers eye the prospect of more customized offerings, they grow more comfortable with the idea of providing the personal data needed to create them.
In the 2019 Accenture Global Financial Services Survey of 47,000 consumers, 31 percent said they would like their bank or insurer to offer new channels such as wearable devices or bots––and 44 percent would be willing to buy insurance from an online service provider such as Amazon or Google.
An example of this is the Well One health strategy app from AON. The app uses smart data analytics gathered through the physical, emotional, social and financial wellbeing touchpoints of individuals, teams and the wider organization. By creating an intuitive and easy-to-navigate experience, AON is able to create comprehensive picture of the individual or organization and deliver focus and clarity, whilst at the same time encouraging healthy behaviour throughout the organization.
By understanding the technology people use and how they use it, as AON.com has done, insurers are able to unlock the insights needed to develop strategies for the future. In fact, 84 percent of insurance executives believe that consumers’ digital demographics are becoming a more powerful way to understand their organization’s customers.
ESTABLISHING TRUST TO DRIVE CHANGE
More than 80 percent of financial services consumers are willing to share personal information with their bank or insurer in return for benefits––but only if insurers can deliver an appropriate benefit, such as lower pricing, priority service, or more personalized service.
Another aspect of consent when it comes to data is addressing privacy concerns. Insurers must find ways to safeguard consumer trust by developing strong and clear privacy strategies and protections. Losing a consumer’s trust by creating an experience which they believe violates their privacy is losing a customer. Carriers must understand where each customer draws the line between privacy and individualization, and must stay within those boundaries.
In order to keep consumers’ consent, insurers need to plan to combine existing customer knowledge with data gleaned from technology identities, while keeping focused on the relevant ‘creepiness quotients’ for your customers. If that can be done, insurance has the potential to unlock untold value.
In my next post, I’ll explore the trend of the Human+ Worker––what it is and how new technology is driving it forward.
To read more about the Accenture Technology Vision for Insurance 2019, you can download it here. If you’d like to learn more about tech, trends and insurance, I encourage you to visit the Accenture blog.