5 Ways Insurance Companies Can Innovate on their Products for Growth

Created April 30, 2020 The Business Value of Design

The insurance industry is viewed as a high growth one, yet there seems to be an array of challenges facing the industry today. With strict regulations, predominantly legacy companies that are needing to adapt to new technology and position as modern brands to younger and more digital-savvy audiences, it’s safe to say that insurance companies have their work cut out for them. 

However, this is an immense opportunity that insurance businesses need to see and seize. As technology continues to evolve with the growth of A.R and V.R, IoT, Blockchain and more. Couple this with the rise of the today’s consumer, who will only engage with brands that understand and relate to their values and offerings, there is a level playing ground for insurance companies. 

Just as in Banking and Finance, new entrants in the Insurance industry globally, sometimes referred to as ‘insurtechs’, have not only raised the bar, but have shown others the opportunity that remains to be captured in this space. 

Here are 5 ways Insurance companies can innovate on their products: 

Digitization and Digitalization

Once a majorly legacy industry, there’s been a rise of ‘insurtechs' insurance industry by storm. These tech driven insurance companies are leveraging digital to collect and process information that was once done the analog way, and to better understand and serve customers. 

Digitization (the process of converting analog processes to digital) and Digitalization (leveraging on technology or digital to improve processes, business models and customer experiences and more) are 2 similar yet distinctive ways companies are leveraging technology to innovate and compete. Digitization (something legacy insurance companies need to do to catch with incoming challengers) and Digitalization are no doubt the biggest ways today’s insurance companies can innovate. 
 

 

Technology 

One of the obstacles established insurance companies are facing in their quest for transformation and growth, is how highly regulated the industry is, we have to admit that even with the entrance of insurtech (technology driven insurance start-ups aiming to increase efficiency and reduce the cost of traditional insurance business model), insurance companies still face these regulations, and the risks that come with their industry, this alone can keep even the most powerful incumbents from venturing into the high-tech space. However with insurtechs like qover , Bima and InsPeer, who have leveraged technology like A.I. mobile technology, Data Analytics and more to improve their customers’ experiences, make processes more transparent and simple for customers, and ease oft burdensome onboarding and filing process, to succeed , they show that it’s a worthy cause to take on.

The benefits of leveraging technology are truly endless as new technologies are introduced and existing ones such as Blockchain, AI, and IoT continue to evolve. Technology can help companies to understand and better cater to customer’s specific needs as well as improve their operations, insurance companies need to actively seek out technology and all that it offers to succeed today and in the future.
 

Branding and Customer Engagement

Companies in this age are increasingly driven to have a greater cause driving them other than just to profit, once upon a time, it was okay to be in business just ‘for the money.’ Today, however, a brand’s credibility and potential to build a loyal and strong customer base lies in their ability to create shared values with their customers based on issues that threaten social, and environmental issues. Even the once and oft ignored political and religious worlds are becoming areas where brands are taking a stand on and engaging with their customers on. 

Award winning Insurance company, Lemonade has managed to pull this off successfully, not only building their product with today’s customer in mind, leveraging on technology such as Blockchain and AI to personalise their services, they also give customers an opportunity to use their to fund causes of that they’re interested in. Lemonade has leveraged opportunities and trends to build a solution that customers are raving about. From their quick and easy onboarding process, to seamless filing and claiming processes as well.



User Experience

In a world driven by humans’ focus on experience, user experience is a practice insurance companies must leverage on. People buy into experiences, they seek out brands that make them feel a certain way, brands that give them satisfaction, make them feel valued, brands that make them leaving the experience better than when they came. 

The demands and the stakes are high, but so are the benefits. In McKinsey’s report of 2018 showing design’s value to businesses, companies that incorporated user experience as one of their core practices in bringing products to market, experienced a double digit growth difference from their industry peers, both in revenue and Total Return to Shareholders (TRS).

The key is having an experimental mindset and a team prepped to leverage any and all learnings from the market to continuously improve on solutions for customers. 

 

The key is having an experimental mindset and a team prepped to leverage any and all learnings from the market to continuously improve on solutions for customers. 

 

Personalization

In emerging economies such as Nigeria, using data and technology to understand the wide variety and idiosyncrasies of customers, allow insurance companies to be able to meet each customer exactly where they’re at. Gone are the days of providing one-size-fits-all products to customers, today, understanding customers uniquely and deeply, and using the right tools, in this case technology and data, to meet their needs is an opportunity that insurance companies can’t afford to miss. 

All in all, there’s no denying, opportunities abound for the insurance industry to leverage, for product innovation, customer experience and growth. 

  • DODO admin

    Susan

    CEO DODO DESIGN AGENCY

    Susan is an avid lover of design. When she’s not working, you can find her reading, eating or admiring anything that’s a combination of aesthetics and functionality done right.

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