Tag Archives: Capgemini

The Insurer of the Future – Part 12

Given that the customer of the future wants solutions rather than products, the employee benefits provider of the future will offer a wider range of products, all designed to work together.

Knowing that careers are becoming to be more fragmented (shorter tenure, parallel income streams, the gig economy), the employee benefits provider will also reduce its dependence on employers.

See also: The Insurer of the Future – Part 10  

The employee benefits provider of the future will offer a broad platform with multiple products (not least life, retirement, health, auto and home) open to employees of multiple companies. That doesn’t mean every employer’s scheme will be the same, as there will still be specifics tuned to the desires of individual companies. But all of the core covers will be the same, allowing the benefits provider to leverage massive buying power, securing excellent deals for employers and employees alike.

Because the core benefits are the same across companies, they’re also portable – very helpful in a world where employees hop regularly from job to job. When an employee leaves company A, he or she can port the entire benefits package to company B. If there’s any premium shortfall, the employee can pay that personally. And the employee benefits provider retains the employee as a customer for longer.

But the new proposition goes even further – because the model recognizes the gig economy and is therefore open to one-person businesses such as Uber drivers as well as employees of larger companies. This, of course, further broadens the customer base served by the provider.

See also: 4 Hot Spots for Innovation in Insurance  

In time, workers’ loyalty will perhaps become more focused on their employee benefits provider than on their individual employers – re-positioning this segment of the industry and opening up further opportunities for innovation.

Earlier articles in this series can be found here.

The Insurer of the Future – Part 10

The earlier articles in this series can be found here

Last year, I moved from the U.K. to the U.S. I tried to arrange insurance directly with the brand names I knew best – but it quickly got difficult. I didn’t have a U.S. credit history, I didn’t have a U.S. insurance history, and I’d only just got a U.S. job.

I realized I needed a broker.

See also: How to Support the Agent of the Future  

That broker was Michelle, and she worked wonders for me. She got me the covers I needed, at a good price, at the right insurer for my circumstances. She was thoughtful, courteous and speedy, and I’ve been delighted by her service. As far as I’m concerned, Michelle earned every cent of her commission.

But I never met Michelle. I never even spoke to her. Everything we did, we did by email.

Which got me thinking – how do I know Michelle isn’t an artificial intelligence (AI) system?

For the Insurer of the Future, I think she will be. In the future, there’s nothing Michelle did for me that couldn’t be done by a properly trained, and properly connected, machine. In the Insurer of the Future’s world, human brokers won’t be needed any more.

I can guess what many of you are thinking: “Hah! Let’s see how much he likes a remote machine when his basement floods.” And you’re probably right. In those circumstances, I might indeed want someone to come and (metaphorically) hold my hand.

But if my basement floods, and a real person does turn up, and she tells me her name’s Michelle – won’t that give me what I need?

I think so. If I need a real person, I’ll be happy that a real person turns up. They don’t even need to be an agent or broker – the Insurer of the Future’s on-site claims handler will be fine, thank you very much.

See also: Insurtechs: 10 Super Agents, Power Brokers  

Some tell me I might be right for personal lines, but commercial lines is more complicated. Well, yes – a lot more data will typically need to be located, analyzed and acted upon. But locating, analyzing and acting on data is exactly what machines can usually do better than humans. Which means it’s even more likely that commercial lines brokers will be disappear.

The Insurer of the Future – Part 9

The other entries in this series can be found here.

As we’ve seen in previous parts, the Insurer of the Future will have far fewer employees in pricing and underwriting, in claims, in product development and in the back office.

Overall, therefore, the Insurer of the Future will have far fewer employees per million of premium than its predecessors. Many tasks previously performed by humans will now be delivered by software.

See also: The Key to Digital Innovation Success  

But that means that the remaining humans, fulfilling key strategic and risk management roles, are far more important than they were.

They will have to be the very best professionals available. Their recruitment, training, development and motivation will have to be top-notch.

They’ll need the very best of support to help them be successful.

They’ll have self-help tools at their fingertips, expert systems support, world-class knowledge management capabilities and collaboration tools to ensure they can deliver to their full potential.

They’ll be part of a culture that is dynamic and exciting, in an environment of constant change – and they will relish every minute of it.

Chances are that, on average, they’ll also be significantly better paid.

See also: Where Are All Our Thought Leaders?  

The Insurer of the Future – Part 7

This is the seventh in a series. The other parts can be found here.

At the Insurer of the Future, products will be very different from nowadays. But how will they be developed? Certainly not the same way as now.

To begin with, all products will be created as a series of modules. Modular design enables a myriad of new products to be developed quickly and easily. Even with just three modules — A, B and C — the Insurer of the Future can generate seven different products (A, B, C, A+B, A+C, B+C, A+B+C), and the options grow exponentially as more modules are added.

See also: Time to Reinvent Your Products  

How does the Insurer of the Future know when a new module is required? Because its real time analytics tell it what customers want, or might want, and an artificial intelligence system can figure out whether that want can be met from the existing modules or whether another one is required. If a new module is needed, those same artificially intelligent systems can carry out the coding required to build the new module, configure the new combination and publish the new product as an option available to be bought. It will then monitor take-up of the new product and iterate it as needed until sales are optimized.

Of course, in this world, products are no longer siloed. Elements of what used to be called P&C, life, health, investment and decumulation products, together with covers yet to be dreamed up, are all now modules that can be combined to meet the precise needs of any individual, employee or business customer of the Insurer of the Future.

The Insurer of the Future – Part 6

This is the sixth in a series. The other parts can be found here.

The Insurer of the Future‘s customer won’t have to buy individual products. Instead, she’ll buy a total risk management solution that flexes to her needs month-by-month, day-by-day and hour-by-hour. She’ll be billed according to her actual usage, so she’ll never be under- or over-insured.

When the Insurer of the Future‘s customer leaves her house, the accidental damage element of her home cover will decrease — because she’s no longer there to damage anything. But her flood and fire cover will go up, as she’s less likely to spot such events early.

If she buys a TV, her insurer will know that and will add it to her policy. The insurer will also ask what’s happening to the old one and will remove it if no longer relevant.

If the customer goes hiking in the wilderness, the Insurer of the Future will pick that up and increase her life cover. If her hiking is abroad, travel covers will kick in automatically. And once the customer is back home safely, her cover, and her premium, will go back down.

See also: A New Way to Develop Products  

Once the Insurer of the Future has earned its customer’s trust, she might choose to open up her current and future search history and social media accounts to its systems. That way, the Insurer of the Future can monitor what she’s thinking about doing (bungee jumping, getting married, having a baby?) and step in with timely advice and support.

Some of the Insurer of the Future‘s older employees remember when “customer lifetime events” were the elusive holy grail.

Not any more — now, the insurer knows about all of these events, often before they even happen.