A new business initiative must always envision a clear value proposition that serves a chosen target audience. In addition, the business must be built around the four pillars of right product, right market place, efficient price, and a clear promotion and communication strategy.
The four pillars have incited recent innovations in the insurance industry. A number of new products were launched with unique scope of coverages and several existing products were mapped to newer and emerging markets.
The value proposition of leading insurers today revolves around speed of service and easy claim management by leveraging technology. Although many insurers are still gearing up to competitive standards, customers have a fair opportunity to both easy buying and claim.
What has transformed in the last ten years?
How many of you have purchased auto or health insurance on an app, website, or other digital channels instantly? Your policy is shot back in less than a minute to your email and WhatsApp account. Now look back at the time when a customer needed to go through several steps or go back and forth to a physical office to get insurance. What we have today is clearly the result of innovation.
Where are we headed?
A recent survey shows that the C-suite of the insurance industry is taking note of the role innovation plays in delivering long-term value and has equal priority as that of short term cash management, if not more.
While the industry is gearing up with huge investments in technology to expand their digital reach, the context is shifting from selling online to active customer engagement in digital and social media channels. This has led to the need for an engaging communication strategy.
Innovation in customer engagement
Insurers have focussed on educating customers about emerging risks, new products, and the changing regulatory environment through a wide range of platforms – from webinars to panel discussions on various key topics that impact their insurance portfolio. Recent innovation by Insuretechs have put forth salient features of the products in a simple and consumable way through podcasts, chatGPT, and more.
Today, many insurers choose to stay connected with their customers through various customised loyalty programs on their digital platform. These programs encourage customers to practice healthy habits and good driving behavior by incentivising them appropriately. There’s more to come and we are surely heading towards a new and transformed insurance market.
In this first part on innovations in insurance, we explored innovations taking place in customer engagement. Stay tuned for more innovation ideas.
If you wish to share your ideas on innovation in insurance, write back to us at info@iracoaching.com
