In the past year, the average car insurance premium has gone up by 11%, as shown by the recent findings from the Association of British Insurers (ABI).
This fast year-on-year rise has led consumers to question whether they are getting value for money from their policies.
Fujitsu’s own New Pace of Change report found 74%of UK consumers regard price as the most important factor in choosing which insurance package to buy, rather than features and online or mobile capabilities.
The fact that the insurance industry has in the past suffered a reputation of being untrustworthy and poor at customer service adds pressure to bring new value to the industry.
However, technologies such as artificial intelligence and automation are transforming the face of insurance as we know it.
Using digital to stay competitive
Firstly, technologies such as AI and automation could enable insurers to offer a more tailored product and smarter targeting when it comes to customer interaction.
How? From data generated within health apps, lifestyle apps to analysing assets such as cars and homes, when used in a smart way, this amalgam of data can offer valuable insights and enhance the customer experience.
Imagine the impact these new technologies can have on the insurance industry – they will be truly transformative for those insurers who understand the potential and seize the moment.
Why is this important? In such a competitive market, it will be personalised services that will set insurance companies apart from their competitors. In our recent ‘Forgotten Shop Floor’ research, nearly half (45%) of those studied said receiving personalised offers would enhance their shopping experience, and the same can be said of the way we consume insurance.
Ultimately, technology could deliver a business change for the better, revolutionising not only the way in which an insurance company works – from the back office to the contact centre – but the services they can provide by embracing a future in a digital world, whilst controlling cost to the customer as well.
A new era of insurance
There’s no doubt the insurance industry needs to evolve.
What we’re already seeing is an attempt at integrating new technologies across three key areas: customer experience, better assessments and adding value by mitigating risk.
Nonetheless, the rising price of insurance is prompting the industry to think about how they can justify the value they offer.
This means that while consumers will begin asking for a justification for the value they’re getting, automation and artificial intelligence can go a long way towards helping insurers build a picture of what consumers want through data. They can then design services that fit with the way their audience wants to purchase insurance, and create new services that serves associated needs.
One example is Lapetus, a US-based start-up, which allows customers to submit selfies which are analysed to help determine an appropriate life insurance policy.
By mirroring this innovation with new internal processes, and by aligning innovation teams with those looking after the core business offerings, the face of insurance will change as we know it.
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