The Financial Brand Insights - Winter 2021

How Insurance Companies Can Keep UpWith Mobile-first Fintech Companies

By Kristina Leach Head of FSI Marketing at QuantumMetric

With the rise of Insurtech startups like Lemonade , insurance companies are facing pressures to digitize the end-to-end customer experience. Customers want to evaluate, price, and manage policies, including submitting claims, online. Insurers need to develop digital solutions to sell, administer and service the policies they offer. Allstate jumped on this trend over a decade ago, when they acquired Esurance to offer more substantial online insurance shopping options. There’s no question that improving the digital experience for both customers and insurance company employees can increase business efficiency, drive retention, and reduce costs. If customers can transact online, they don’t need to call the call center to get assistance. Online transactions can also be straight-through processed, eliminating the need for manual back office processes and significantly reducing errors. Additionally, with a registered email address,

insurance customers can provide eDelivery to their customers, greatly reducing print and postage costs for the numerous communications insurers send out. Finally, customers who have taken the time to establish an online presence with their insurer tend to be more sticky. To accomplish the above in 2021 and beyond, insurance companies need to take a page out of the retail banking playbook and build standout mobile experiences for insurance customers. Lemonade’s mobile app, for instance, allows customers to get insured in just a few swipes — no agents, no hassle. This doesn’t mean that other insurance companies should do away with agents and call center representatives entirely. Rather, the digital and human experiences must complement each other. Customers

should have access to self-service tools across digital platforms during the research phase, but especially on mobile devices. Agents and representatives, on the other hand, should have the tools to help customers seamlessly, without all of the red tape associated with filing a claim and getting insured. When customers need to file claims, they’re often doing so after a difficult life event, such as a car accident or the loss of a loved one. This means that customers are making claims during stressful, emotional times. Therefore, the easier the claim can be submitted, preferably directly via a mobile device, the better the experience for the customer. Customers should be able to submit claims, photo documentation, and manage policies on the go — and without any friction. The Road to Digital Excellence Is Challenging for Insurers Building an easy to use mobile app to allow policyholders to interact with their insurance company seamlessly may sound easy, but

unfortunately, insurance companies face numerous challenges achieving this goal: ● Legacy systems and processes that were established long ago were not built to support interactions on today’s mobile devices ● Regulatory restrictions on how insurance companies can interact with customers ● Organizational silos between product groups ● Unengaged customers Infrastructures built to support browser experiences do not necessarily support mobile experiences. The result? Insurers have to duplicate efforts to create a mobile version and then they have to maintain each web and mobile experience separately. Also, different policy types may be housed on different platforms, meaning customer data is not centralized and therefore can be challenging to keep in sync. Regulations can also complicate the ability to create seamless, user-friendly digital experiences. And even if insurance companies build digital experiences, it can be challenging to get customers

Compared to retail banks, insurance companies have been much slower to adapt to the digital-first, mobile world.

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THE FINANCIAL BRAND INSIGHTS WINTER 2021

THE FINANCIAL BRAND INSIGHTS WINTER 2021

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