As the digital revolution improves how we conduct business, here’s a look at how we can start recalibrating the insurance industry for the future.
In a world informed by shifts in innovation and business efficiency, clients will require optimal services from insurers with professional relationships that support managing risk for the future. The new digital age and intelligent technology at our disposal will inform future engagements and transactions in the industry. This will likely place the risk manager’s ability to adapt and recalibrate centre stage.
Managing risk
The insurance industry is responsible for providing strategic and timely risk management advice in partnership with its business partners. Insurance statistics have always been the bedrock for insurers to predict future outcomes effectively. As technology becomes critical for business success, clients will rely on risk managers who can partner with them through risk moderation. This includes implementing early warning systems that mandate strict adherence to operational, safety, and health protocols to respond to emerging challenges timeously before they become issues and crises.
Disruption has created an opportunity for businesses to identify innovative methods to conduct business at lower costs. However, the management of costs will not only rest with insurers. For efficient and effective risk management, the entire insurance supply chain must work together on this journey into the digital future. Insurers and intermediaries can also reap the benefits if they can re-evaluate rigid or limiting approaches, consider the effective use of the value chain for end-to-end risk management solutions and prioritise swift, effective responsiveness.
Prioritising collaboration
The benefits of technology – agile innovation, connectivity, efficiencies, speed, and greater intelligence – are becoming increasingly evident. Businesses will view the future differently, with the innovations and risks that come with it. Disruptions such as low interest rates, rising global tensions, supply chain disruptions, power outages, etc., affect clients in numerous ways.
Risk managers are increasingly looked at for their ability to effectively transfer risk away from customers to effectively focus on sustaining their businesses and participating in economic recovery. Risk management is, however, a three-pronged partnership between insurer, broker and customer. Therefore, more collaboration should become the order of the day when seeking beneficial solutions.
Supercharging incentives
More consideration needs to be given to creating loyalty programmes and add-ons to add value to the customer’s portfolio. These incentives may need to consider each customer or business requirement individually, as the needs may differ. However, the common aspect will always be the settlement of claims. In this instance, insurers will be challenged on their ability to utilise services and enhancements that quickly assess and settle claims.
Road map for relevance
Insurers and intermediaries will be required to improve their relevance and the value they add to customers. To enhance its offering and remain relevant, the industry will be expected to:
- Enhance underwriting to offer bespoke, uncomplicated products and solutions that minimise risk and are price competitive.
- Expand multi-platform accessibility. Increasingly, customers are expecting 24/7 services, with many demanding near-real-time responses. Self-service (through chatbots) options are becoming a mainstay, and more are taking to social media rather than traditional business engagement channels.
- Implement best practices for customer service excellence and risk management.
- Ensure seamless processes for timeous claims resolution.
- Engage in partnerships that strengthen operational capabilities – from complementing your value proposition to introducing more technologically savvy systems and processes to enhancing productivity and efficiencies.
Companies need to accept that the digital revolution is here to improve the way of conducting business and understand that fast-tracking the industry to digitalisation will ensure that it can grow its customer base and remain valuable to the whole value chain.
