The pace of technical innovation continues to be top of mind in the insurance industry. About 96% of insurance executives say innovation at their companies has increased over the past three years. And global investment in insurtechs hit a record $3.26 billion through the first three quarters of 2019, according to Deloitte.
It’s clear 2020 will see a continuation of technology advancement within the industry. Following are four trends we are seeing on the horizon:
1. User Experience — Carriers, agents and consumers all want the same thing: for the insurance buying process to be fast and easy. Consumers want to research plans, compare options and buy insurance products when they need them on the device(s) they choose, often on their mobile phone (more than half of all search queries in 2019 came from mobile, Google says). And consumers prefer a tailored experience.
According to Accenture, 90% of insurance executives say that integration of customization and real-time delivery is the next big wave and competitive advantage. Additionally, nine out of 10 insurance executives believe a tailored approach will give companies a competitive edge. The firm says the ability to fulfill consumers’ needs at the “speed of now” will be the way to stay competitive, with the world available at consumers’ fingertips via smartphones.
Digital expectations have evolved, and there’s an opportunity to deliver a much better customer experience in the insurance industry. Technology has enabled a world of extreme customized and on-demand experiences. The insurance industry must harness this technology to deliver the superior customer experience that consumers are quickly coming to expect, to stay competitive.
This mobile-first, real-time delivery approach has influenced our marketing, design and development teams to focus on a highly mobile-optimized user experience in every aspect of our operation. We expect a mobile-focused push for the insurance industry in 2020, from both the carrier and broker/agent sides.
See also: Insurance Innovation’s Growth Challenge
2. Analytics — Data analytics is growing across industries, given its potential to help businesses get ahead. Data-driven organizations are 23 times more likely to acquire customers, six times more likely to retain them and 19 times more likely to be profitable, McKinsey Global Institute says. The insurance industry is no different.
The one constant across all our largest and most successful partners is their obsession with data and reliance on specialized technology. One such example is with customer relationship management (CRM) companies. CRM companies (Salesforce, and others) are developing industry-specific integrations, such as conversion endpoints, to track performance metrics, allowing for more real-time recording of important metrics. Insurance companies that take advantage of these tools have a major competitive advantage over those that do not, due to their ability to accurately measure and track important metrics like customer long-term-value (LTV), conversion rates of lead data and marketing return on investment (ROI).
3. Sales Enablement — Increasingly, carriers and agents are seeking more information, content and tools to engage buyers and help them to move to purchase, as well as address future needs post-purchase. Use of sales-enablement tools is on the rise, with only 20% of organizations reporting using them in 2013 and over 60% using them in 2019, according to CSO Insights. Agents want to understand who the lead is, what the person needs and how agents can best help drive more effective communications and fuel analytics and future programs. Agents also need these systems to work with other technologies—from mobile app, to CRM—to enable access to real-time information and a more seamless process.
4. Compliance — Compliance will and should remain a top priority for the industry. As consumer data protection becomes more of a focus in the media, we can expect to see more states moving toward a more European GDPR type data protection policy. California is one of the first states to adopt such a policy with the recently adopted California Consumer Privacy Act (CCPA), which came into effect Jan. 1, 2020. With more legislation focused on protecting consumers, we expect a stronger push toward industry-standard software to verify a company’s right to contact consumers.
See also: Blurring Boundaries Drive Innovation
In a world that is moving toward better technology solutions daily, it is important for carriers, brokers and agents to keep up with these changes and constantly look for ways to interact the way that digitally savvy consumers want to interact.