Customer engagement presents biggest opportunity for InsurTech

42% of life insurers believe InsurTech will deliver most value in engaging customers

Nearly half, (42%), of life insurers believe technology could deliver the most value in engaging customers, out of all the touchpoints along the customer journey, according to a poll of over 130 life insurance professionals by Hymans Robertson, the leading actuarial consultancy. Other areas where value could be added were in sales & marketing (29%) and then underwriting (23%), while respondents saw the least opportunity for technology to add value to the claims process, with just 6% of respondents opting for this.

Commenting on the findings, Richard Purcell, Innovation Lead, Life and Financial Services at Hymans Robertson said:

“In the insurance industry much of the new technology focus to date has been on getting customers on board quicker. Efforts have focussed on optimising marketing and the lead generation process, or making the underwriting process quicker and easier. There has also been a big focus on managing costs and improving customer outcomes in the claims process through the introduction of new solutions like virtual GP services.

“But when it comes to engaging with existing customers, relatively few insurers have focused here so far. There are many ways insurers could approach this, all with clear benefits. At a very basic level, customers may be less likely to lapse their policy if they are reminded of what they are getting for their money or are offered tangible benefits such as health checks or money off other products and services.

“If insurers go a step further and also proactively educate customers about other financial needs, not only could this help customers make better informed decisions and improve customer outcomes, it could also lead to take up of other policies. Another potential area of engagement is wellness and prevention of illnesses. Providing simple lifestyle improvement tips could help customers make more informed decisions about their daily lives, and ultimately reduce claims for certain illnesses.

“2018 is set to be another busy year for InsurTech and we should see some interesting developments, with more fundraising, new start-ups, and incumbent insurers also upping their game. While some incumbent insurers may be following a strategy of innovating in-house, others are seeking to acquire or simply partner with new InsurTech start-ups. But with so much activity it is difficult to know where to focus attention and where there could be most opportunities for insurers and InsurTech companies to collaborate.”

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