It’s a natural human reaction to view new technology like AI as a threat. However, by harnessing its potential, we can enhance the customer experience and provide value to clients in ways that were never possible before.
As you enter our offices you will see the saying, “Old keys won’t open new doors” printed on our office doors. While I don’t know the original source of this quote, the message serves as a reminder: To venture into new territories and experiences, we must adopt new approaches and strategies. Simply relying on familiar methods won’t lead us to fresh opportunities. Embracing new methods, innovative strategies and distinctive actions is essential for unlocking doors to new opportunities. Recycling old keys will not suffice in this pursuit.
Emphasising the constants
Rather than fixating on predicting the unpredictable future, we have to consider what constants will remain for long-term success. While many strive to forecast the changes ahead, the trick lies in identifying what will endure over the next decade.
Jeff Bezos, founder of Amazon, and investor Warren Buffett both achieved success by focusing on what remains consistent, rather than pursuing unpredictable changes. By following long-held, successful strategies, we can reduce risks and ensure long-term profits. Instead of being drawn in by passing trends, focusing on what is constant paves the way for sustainable growth. Embracing the inevitability of change and preparing for diverse futures depend on identifying and leveraging these constants.
Nowadays, decision-making poses significant challenges. Sadly, there are no simple solutions. This is where guiding principles prove invaluable. As Bezos said, “Build businesses around enduring needs – those present today and likely to persist a decade from now.”
So, rather than fixating on the evolving landscape over the next decade, shift your focus to those things that are expected to remain constant. Shape your business strategies around these enduring pillars. In a decade, people will still engage in shopping, travel, news consumption, research, listening to music, reading, communication, education, work, healthcare, rentals, fitness, entertainment… and even insurance! All the while, some risks will remain the same and new ones will evolve.
While educational approaches may shift towards remote learning and personalised experiences, and lifestyle preferences may lean towards rentals and AI-dependent solutions, fundamental needs will endure. Focus your efforts on the things that stay constant in the midst of all this change.
AI versus human brokers
Artificial intelligence (AI) is currently a major focal point within the insurance industry. It has the potential to revolutionise conventional practices and enhance customer interactions. Despite AI being under research since the 1950s, recent advancements by tech giants like OpenAI, Microsoft, Google and Facebook have significantly improved its mathematical, scientific and programming foundations, making it more accessible to modern society.
The rapid advancement of AI is evident in its impressive achievements, such as excelling in the bar exam and contributing to ground-breaking discoveries. Many insurance brokers find themselves questioning the implications of AI on their roles, wondering whether AI poses a threat to their professions – or even to humanity itself!
The immediate response is reassuring: There are no signs that AI is poised to replace insurance brokers (or humanity), but it will inevitably reshape brokers’ roles and the overall insurance landscape in the near future. There are many discussions taking place in the industry around the transformative potential of AI. The idea that insurance brokers could become obsolete is fuelled by misinformed individuals, or those seeking personal gain – a narrative dating back to the early internet dial-up days.
We have witnessed the industry’s evolution, where direct insurers initially predicted the demise of insurance brokers, only to retract these statements later and start collaborating with independent brokers.
Lemonade’s foray into “synthetic brokers” reflects an attempt to leverage AI for profitability, albeit acknowledging the enduring value of independent brokers as consumers pushed back against AI-driven insurance brokers.
AI is not a looming threat, as it is regularly portrayed in movies. Rather, it serves as a pivotal tool for enhancing the insurance sector while retaining human oversight. The impact of AI on insurance brokers’ roles will vary across different product lines, from personal to life and health insurance.
Here are a few changes brokers may encounter:
- Adapting to new objections and enquiries as consumers become more informed about their risks due to AI advancements in consumer applications like ChatGPT.
- Embracing new AI features to automate workflows, which will require an understanding of these systems to streamline processes.
- Harnessing AI’s capabilities to enhance customer service, combat fraud, prioritise clients effectively, identify cross-selling opportunities and tailor personalised interactions.
The pace of technological evolution in the insurance sector means brokers will have to adapt quickly to outpace competitors, enhance customer experience and remain competitive in a changing market. As AI influences new and existing risks, brokers must familiarise themselves with emerging technologies and industry trends to navigate this dynamic landscape effectively.
Time is precious
“We must prioritise delivering exceptional customer experiences.” This mantra is often heard in business circles, emphasising the crucial role consumer experiences plays in acquiring new customers and retaining existing ones.
While organisations diligently inspect their processes to enhance the customer journey, they often overlook a powerful touchpoint: the claims experience. In this new AI world, policyholders still receive blank claim forms in PDF format from their insurance brokers.
The impact of document design and related information on the overall customer experience is frequently underestimated. Whether viewed online, in emails, or on paper, the claims process holds significant emotional weight during the moments customers interact with it. These emotions influence customer behaviour and their loyalty toward your brokerage. Consistency in communication across all channels is vital to avoid sending conflicting messages that lead to confusion and frustration.
Customers expect seamless, valuable interactions at every touchpoint, including the claims process, which, when improved, leads to enduring and profitable relationships.
Here are three simple strategies you can employ to delight customers:
Streamlined designs: Simplify information for easy comprehension.
Empowered self-service: Offer flexible communication options.
Personalised connections: Deliver pre-populated, accurate, and contextually relevant content on a digital claims platform.
All three ideas prioritise saving customers’ time, a precious commodity in today’s fast-paced world. As an industry, we must cater to the tech-savvy, multitasking customer by ensuring every decision enhances their experience. Given that the claim process interaction is paramount, getting it right is non-negotiable.
By staying informed, agile, and receptive to AI’s transformative potential, you can not only future-proof your career but also deliver unparalleled value to your clientele.
