Customers used to the digital responsiveness and convenience of technology companies such as Amazon, Google and Uber will soon demand the same seamless experience from insurers. But they’ll also expect additional layers of security, ethics and well-being as we move through the decade, even as insurers create next-generation experiences that re-define customer engagement.

Such experiences will manifest in different ways across different types of insurance. Future customers, for example, will expect autonomous vehicles that check the safest routes to automatically reduce pay-as-you-go premiums. In the event of an accident, the same vehicles will instantly assess damage and file claims. Wearables will help consumers monitor their own health for cost reductions, while travel insurance will adapt in real-time with a person’s location data.

The technologies that will make these future scenarios a reality already exist, and with IDC predicting connected devices could reach almost 56 billion in number by 2025, generating 73.1 zettabytes of data, opportunities for next-generation experiences abound. By adopting such functionality early and strategically, insurers can create experiences that successfully disrupt and re-define the industry.

‘Connected devices could reach almost 56 billion in number by 2025, generating 73.1 zettabytes of data.’
:  IDC

Seamless experiences are an expectation of everyday life. But to fully harness the power of data-driven decision-making and analytics, insurers will need to create digital ecosystems that go beyond current silos. In response, in the next five years insurers will integrate different kinds of insurance. Pet and personal health insurance, for instance, could become connected, with wearables tracking activity and each simultaneously reducing in price when a customer takes their dog for a walk.

In commercial insurance, one US provider has already created a digital network that connects products and services for its construction customers in one place. The aim of the connected ecosystem is to encourage customers to adopt innovative technologies that help mitigate risks, improve business outcomes and ultimately enable personalised insurance solutions.

Ecosystems are also beginning to stretch across customer needs. Route, for example, is a visual package-tracking application that allows shoppers to view and track multiple orders in real-time. The service offers users the option to add insurance to an order, backed by Lloyd’s of London, for just 1 percent of an item’s cost.

‘The number one question for two billion people who buy things online is, ‘Where’s my stuff?’ We basically made shipping insurance digital across the Internet.’

‘A majority of global consumers (55 percent) trust financial service providers with their personal data.’

For insurance firms themselves, digital transformation will ensure that they not only survive oncoming uncertainty, but build the resilience required to thrive as well. This will not be achieved with technology alone; companies must establish a balance of talent and infrastructure.

They will need cultures that promote digital literacy and democratisation of data through self-service analytics. This way they can empower their employees to make more confident decisions that lead to business growth and competitive advantage.

In turn, this will enhance both workforce satisfaction and customer experience through more streamlined services. One tech-focused home insurance provider is a case in point. Its adoption of ML goes beyond customer experience and driving efficiencies to underwrite risks and manage claims, empowering employees and freeing up time to focus on the high-value aspects of their roles.

‘Digital transformation will ensure that they not only survive oncoming uncertainty, but build the resilience required to thrive as well.’