Recent McKinsey research showed that although digital technology has propelled some companies to become clear market winners, but for many more companies, corporate earnings have actually been impacted. The reason for this is because consumers, not companies, are often the ultimate winners. This is likely to be seen in the insurance industry as well.
The traditional insurance business model has proven to be remarkably resilient which only up until recently is experiencing the digital effect. This is changing how products and services are delivered, which will change the nature of those products and services and eventually the business model.
The goal for companies must be to meet customers’ expectations. With digital technology today, customers want an omni-channel that is simple, quick in delivery, accessible 24hrs with clear and relevant information to make better informed decisions. In the shorter term, fulfilling this goal of customer satisfaction would result in a chance for companies to see improved profits in their core business.
Therefore, customer satisfaction and retention will be a more important key performance indicator (KPI) as compared to operational efficiency. Companies must fundamentally change their business models which would require cultural change and taking focus away from the product but instead to the customer.
Data will be the lifeblood of the new order. Any lack of data would result in gaps and cause integration and process flow issues. Companies that lack data can expect to find their business models severely challenged.
With this understanding, the way forward for the development and adoption of insurtechs would be in two phases beginning with a focus on digital distribution and data, the second being sales and marketing.
That is why at Insuree, we are focused on refining our customer-centered platform that is founded upon creating a streamlined digital distribution channel and database to elevate customer satisfaction while automating the pain points faced by insurance agents. We believe that we are strategically positioned to potentially make a huge impact while bringing digital transformation to the insurance industry in South East Asia.