Generation D means disruption for the Insurance market
There’s a big change happening in the insurance industry and those who stay on top of the change will have a significant edge over their competitors.
According to this years’ Dimension Data Report (Global Contact Centre Benchmarking), 40% of customer-facing operations have no analytical capability and it shows that the digital channels, which already account for 35% of all customer interactions, will overtake voice by 2017. These are real concerns and a likely disruption to insurance businesses who are not moving as quickly with change and keeping up with demands, as consumers become more and more empowered by technology.
Many insurance businesses are still focused on the traditional use of the phone and need to move quickly to keep up with the demands of the digital generation.
Unfortunately, the Insurance industry has, in the past, had an image problem despite the sector being a significant enabler to economic growth and providing comfort during claims and in times of extreme need. The irony is that consumers, especially Millennials (people born between 1980 and 2000), sometimes known as Generation D or Generation Y, have a negative view of the profession. These types of consumers see insurance as a necessary evil.
At the start of CRM (customer relationship management), customer journeys were defined and executed by the insurer using a central CRM system. The overall control of the system lay with them and consumers were communicated to using a rigid plan, and usually only when it came to renewal time. The power of the CRM system rested with the insurer who owned the technology to control the dialogue.
A restart of the relationship was required between the insurer and the policyholder, and this redefinition has already started to be implemented with the twin drivers of technology and behaviour enabling the changes to take place.
Look at almost any day to day situation and it can be seen that using mobile technology has quickly become the way to work. With the increase in mobile devices and generational changes, consumers are using mobiles more and more in their every-day life and, as a result, they expect the industries they communicate with to fit in.
With the current challenges of rising costs and the increasingly complex process of submitting a claim, insurers can take advantage of leverage the mobile channel to reduce costs, enhance the customer experience, improve operational efficiency and thereby increase revenue.
Insurance companies know that they have to get better at managing risk, controlling expense and creating new products. Mobile solutions should be an integral part of achieving these initiatives. Going mobile will also attract new customers as well as retain existing policy holders.
In search of an interactive dialogue
Insurance companies needs to become more familiar with smart phone applications to ensure they stay ahead of their competition. Using these tools to streamline claims, edit policies and to ensure customers are engaged is a vital response to the shift in control from ‘pushing the journey’ to a truly interactive and flexible dialogue between insurer and customer.
Recent research by Econsultancy suggests that 63% of financial services companies will increase their digital marketing budgets this year with the average increase running at 21%. One third of respondents say that improving the customer experience is their major focus.
It is certain that the industry will change and industry experts are forecasting it will change for the better. What ever happens this new digital era will have a big impact on insurance.
How do I find out more about mobile data flows for the insurance industry?
At AAC Systems we provide leading-edge software solutions that put you in control of your own data and processes. Our flexible operating model allows us to adapt quickly to new technologies, market conditions and regulatory frameworks providing you with an agile and friendly service that guarantees customer satisfaction.
For more information on how AAC Systems can help enhance your mobile data processes please speak to one of our specialists on 01628 421569.