Digitization has become the 'new normal' not only in the insurance sector but across the industries worldwide
In 2020, Digitization has become the ‘new normal’ not only in the insurance sector but across the industries worldwide. While COVID-19 continues to affect the insurance distribution globally, the insurance providers on the other hand are diving deep to prepare robust strategies to withstand the short and long-term implications of this pandemic, which shows no signs of ebbing yet. We are already witnessing a profound change in human engagement, and how social distancing is moving personal interactions to digital channels. As social distancing would be the next normal, it will have a profound impact on the insurance distribution in both life and non-life insurance segment. Many insurers have already started focusing their strategies towards expanding digital customer service channels and remotely building new customer relationships to combat the next set of challenges. Here is a Customer Archetype that the Insurance Providers Need to Tap
Traditional Approach | Traditionalists | Millennial |
Prefer face-to-face interaction while making a purchase | Follow a rational approach and are looking for value-for-money | Looking for innovative products and are constantly on digital platforms |
Digital is not convincing and promising | Prefer human interaction but are receptive to the digital approach | Digitally Savvy and technologically advanced |
Trust is the key factor | Price is the key factor | Flexibility is the key factor |
Would prefer highly responsive Insurers only | Can switch purchase channels | A big ‘No’ to Terms and conditions and complex models |
(Source: PwC)
Two key areas of focus to improve the conversion rate of these customers through digital mode are simplified products and increased customer awareness!