Having considered the pillars of customer-centricity in my previous post, I’ll now look at the digital enablers that will help insurers to become more customer-centric.
These enablers facilitate both efficiency—for example, by introducing digital business processes and optimizing business models—and growth—perhaps by allowing a deeper understanding of customers, new ways of interaction, and more customized products and services.
The digital enablers can be exploited at each step of the customer-centric journey, although their relevance varies in different stages, as the below diagram illustrates.
Let’s look briefly at each of the digital enablers, bearing in mind that these categories sometimes blend into each other:
Insurers have always had good skills for analyzing data. Now they should deploy these skills to leverage larger and more diverse pools of source data, exploiting computing power and artificial intelligence to refine their strategies and drive business results. Their entire value chain (e.g. personalization of products, underwriting, claims, leakage, fraud, customer service and value-based management) is set to benefit from a more advanced and integrated approach to analytics.
The use of digital tools and channels, together with customer insights gained through analytics, can provide tremendous support to commercial offerings. Digital marketing helps to deliver customized offerings across channels, and to reverse the traditional “push” approach of insurers in favor of a more effective “pull” proposition that is tailored to meet customers’ needs and preferences.
Mobility enables consumers to interact with insurers while they’re on the move. It also enables insurers to offer consumers a range of 24/7 services and even advanced offerings such as real-time insurance coverage based on geo-location. The importance of mobility in the insurance business is set to grow exponentially, as connected devices become more popular and enable more personalized and convenient insurance solutions (for example, for motor, home and health insurance coupled with telematics devices).
By using social media, insurers can access an immense amount of customer data which, coupled with data they already possess, can provide rich customer insights and enable the development of superior customer propositions. They can learn much about how consumers view their brands and products from social media, meet new customers, and engage with them in meaningful ways in an environment where customers feel comfortable.
Before they can effectively leverage these digital enablers and shift towards a more customer-centric business model, insurers must address a range of conceptual and practical challenges. These obstacles will be the subject of my next two posts.