Why digitisation is a must for the insurer in 2021
The insurance sector is changing rapidly. With the changing needs of (future) customers, as an insurer you cannot escape digitalisation. Read why here.
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One of the biggest reasons to make a digital translation is the consumer behaviour of a new generation of customers. The wishes of this young target group are completely different from those of older generations. Older generations have a strong customer loyalty and are looking for trust and quality. The younger generation is looking for convenience and flexibility and will switch more quickly if they are not provided with these. This is also evident from research conducted by ING. Here, 54% of 20 year olds say they switch from time to time; a stark difference from the 33% of 70 year olds. The number of annual switches between these generations has actually increased sevenfold. ING therefore advises insurance companies to prioritise digitalisation in order to make their businesses future-proof.
Implementing an online platform will bring about a lot of change in the customer relationship. The personal approach of an independent adviser gives way to the efficiency of online insurance platform. The advantage is that it will be easier for customers to find their own way in a wide range and transparent environment through fast service and 24/7 support.
Private insurance vs. business
It is therefore important to clarify which core values have priority. The fully online insurance is in fact best suited for private insurance. There, digital transformations will quickly connect to customer needs. Insurance in the business segment, where insurance mainly consists of complex customised work, it is valuable to maintain the role of personal adviser. Here, the process automation especially behind the scenes have the greatest effect.
The insurance market is currently moving towards a future-proof However, this is happening mainly at the large insurers, which is why there will be greater consolidation. Although it is often a big investment, it is important for small insurance companies to move along in order to maintain their independent position.
For small insurers, the challenge is to embrace digitisation and retain the added value of the personal advisor role. The demand for reliable advice remains, and within this industry lies the knowledge and experience to set up a platform that can provide it.
Do you have questions about digitalisation? Our IT Accelerators help you translate your specific business objectives into effective digital solutions.