Property and casualty insurance has operated in a remarkably consistent fashion for many decades. In doing so, the industry has relied on the consistency of certain lifestyle patterns and choices from most or all of its insureds.
In a 2011 article in Insurance and Technology, enumerated several big technological changes in the insurance industry since 2001, including the rise of big data, the ubiquitous nature of cell phones and social media, and an increased emphasis on data security and privacy.
Traditionally, marketing focused on introducing customers to brands, products and services, then directing them toward sales staff for purchases and relationship building. In the digital world, however, marketing plays a key role in the entire customer lifecycle, at CIO stresses.
Until very recently, the insurance industry had “remained unchanged, untouched by innovation, for a hundred years,” Lemonade CEO and cofounder told David Gogel of in December 2016. And while some insurance participants saw the industry’s longevity as a sign of success, innovators like Schreiber saw an opportunity for major disruption.
Direct to consumer (D2C) sales channels are proliferating, as P&C insurers strive to meet customers where they are. D2C provides an opportunity to increase sales and improve customer retention — but it demands a different approach than older tactics, which benefited from a sole focus on the bottom line.
“Most insurers offer a digital insurance mobile app that provides digital proof of insurance and a way for customers to pay their premiums or file claims,” wrote for Mobile Business Insights in 2016. “These features are all common now. Insurers that don’t offer similar tools are already behind.”
In a 2009 interview with Insurance Journal, of The Hartford ranked “improving operational efficiency” third on a list of essential priorities for P&C insurers, below both customer retention and a systematic sales approach.
Direct to consumer (D2C) sales have shaken up multiple sectors, from retail consumables to insurance sales. While D2C sales of property and casualty insurance have the potential to improve customer satisfaction, increase upselling, and boost retention, moving into the D2C space also poses challenges for insurers who have invested heavily in more traditional models.
The traditional product development cycle in property and casualty insurance moves at a snail’s pace. Drafts, approvals, revisions, verifications of key details and other steps place months between the moment a new product is envisioned and the day it becomes available to customers.
“With integrated, comprehensive security and fire and life safety system oversight in place, facility managers are better equipped to minimize disruption and focus on creating what matters most: a safe, secure environment, maximum efficiency and uptime, and a healthy bottom line.”