At a time when customers want to decide their user experience, insurance carriers can expand the tools beyond usage-based insurance with Telematics
Insurance companies agree in unison on one thing – customers want more from digital technologies. If this is the case, personalized customer experience can bridge the gap between insurance carriers and the customers who always look for trust, efficiency while communicating between the insurers and customers. Then the question will emerge ‘why all this for?’ The answer lies in trust factor.
A survey by IBM says 43% of customers trust insurance industry. Here comes the opportunity as well as challenge. Opportunity lies in brining on board those who trust the insurance industry who comprise 43%. On the other hand challenge lies in how to bring the remaining 57% under the umbrella of trust. Let us discuss in detail.
According to best selling business author Brian Tracy, ‘trust is based on integrity’. The digital revolution brought to the forefront the importance of receiving data anytime, anywhere with critical information. In such a scenario, is there technology solution that connects customers through their preferred method via smartphones or smart mobile devices?
A large section of customers opt for advice and information through mobile platforms. They communicate on net and gather information the way they want. This is more pronounced in the case with millennials who look for instant gratification. This customer behavior will have its bearing on insurers. It is in this area the insurers should build their trust by bringing the ones who trust on board, which means eating the pie of the competitors. If the smart insurer goes the extra mile by responding to the evolving consumer behavior they will capture the largest market share. The trust they built within the 43% will act as reference for the remaining 57% who are waiting upon hearing the user experience of active customers who share their reviews on the net.
Customer retention holds the key for insurers. To stay afloat in the competition, insurers should offer mobile technologies that can be used by the customers on their electronic devices.
Technology is all about providing data collection tools like:
- Speed-ups
- Hard Brakes
- Rapid Acceleration
- Location determinants for driving & parking
- Time spent driving (duration and hour)
- Live traffic levels
- Driver vs non-driver distinction
- Real-time, easily customizable reporting
Besides the robust mobile application should have engagement tools like:
- Direct marketing
- Driver improvements
- Traffic alerts
- Weather conditions alerts
- FNOL claims filing
- Image/video capture, location tools, audio/video statements, traffic/weather determinants at time of claim
- Pathfinder
- Special Teen Driving program (Geo-fencing and Parent Portals)
- Geolocation capabilities
Cloud technologies also play a vital role in providing information 24/7. Insurers should provide technical features like Cloud-SaaS analytics with a dashboard and Real-time reporting through a web portal and mobile application. This will give the edge to customers to make informed decisions as desktop servers are prone to crash that can result temporary halt in services. Therefore cloud technologies are vital for insurers.
As rightly said ‘trust is based on integrity’ mobile applications can elevate trust through its inbuilt integrity as a result of innovations on ICT front.
Digital technologies have its bearing on employment. Technology and automation may result in loss of jobs in the insurance industry. But this will open floodgates of opportunities to the economy where a large segment of the population will come forward for insurance cover where their lives and properties are safeguarded. Insurers anyway invest funds in infrastructure and raise capital for them. This will generate employment opportunities for the hundreds of thousands which are vital for running the economy, increasing purchasing power of the workers who received employment through investments on the infrastructure front. Does this sound good for the economy, people and government at large?
Technology leapfrogging for knowledge economies is the driving force behind businesses that thrive on innovation and entrepreneurship. This is what exactly some ICT companies are working towards to create a knowledge ecosystem for insurance companies, thereby creating opportunities and investments in the macro economy. Technology offers value to the customers which will ultimately build customer loyalty. Hyderabad based Prime’s telematics system, Xemplar, enables fast and efficient two-way communication between insurers and customers. Xemplar’s mobile app-based system claims it can save hardware and infrastructure costs for insurers. Xemplar can be applied to any mobile device or tablet, reaching drivers anytime and anywhere, providing insurance companies with critical information. Now insurance carriers can think on expanding tools beyond usage-based insurance with Telematics.
