In the ever-changing insurance world, building and nurturing customer relationships has become increasingly challenging. The past year has taught us that industries can be disrupted – and equally adapt – almost overnight with consumer preferences for services becoming more unpredictable.
As the dust from COVID begins to settle, we foresee new challenges arising for the modern insurer. With the world returning to relative normalcy, and industries beginning to open back up, we will see a significant impact on how personal lines of insurance are packaging up policies.
Whether it’s travel, auto, or even wedding insurance, for the first time in years, consumer appetite for insurance could drastically change as citizens become more conscious about personal and financial risk post-COVID. The insurers that will fare well will use technology in a smarter and more agile way to cater to changing customer demands by rising to the challenge.
Over the next few months, current and emerging consumer demands will open the opportunity for insurers to consider new approaches. According to Deloitte, innovative product offerings including on-demand policies, usage-based plans, and an expanded portfolio are expected to have a big impact across functional areas. When coupled with changing consumer sentiment and digitization shifts, insurers who can track and respond to changes quickly will gain a competitive advantage.
As insurers adapt to these trends, they will need to be prepared to ‘transform’ using new technology and be willing to do things differently. Although the concept of changing a mindset sounds easy, it is harder than you think. Insurers can often fall into the trap of failing to break away from legacy technology thinking and hesitate to expand due to the time and effort required when creating a product.
Instead, insurers should really be thinking about how they can move away from broad and traditional products or programs to be more in tune with what policyholders really want. Whether it is offering quick quote questions or policy documents, insurers will need to be agile, iterative, and responsive to meet these customer experience needs at speed.
At INSTANDA, carriers and MGAs often ask how they can capitalize on the rising connected consumer landscape and respond to evolving markets at speed. For insurers to adapt to these new trends, they will need a cloud-native platform - one that can launch, design, and customize products in real-time.
Fortunately, that platform is available today. Business users within a carrier or MGA can build and distribute products using the INSTANDA platform with limited IT involvement. Using templates, prompts, and workflow outlines, anyone in the team, along with a web designer, can build intuitive, attractive, and seamless insurance products for customers. When integrated with business resources, those closest to customers can take control and design competitive products at will to free up time and resources.
If we use Covenant Underwriters as an example. In less than six months the excess and surplus line insurance providers were able to independently build a coastal commercial hotel and boutique motel product. Since implementation, they have now branched out to all fifty states and have recently added an ancillary cyber insurance product as a supplemental offering.
By becoming part of a movement that pushes the boundaries of insurance technology, users can not only convert more customers but also generate new revenue streams. Once an idea is created, INSTANDA can set the wheels in motion and implement it in a matter of weeks or months, not years.