You know the InsurTech movement is gathering momentum and making an impact when PwC dedicates an entire research study to it. In a survey of over 189 insurance CEOs and other top executives, they discovered that 56% believe they are at risk for losing market share to aggressive InsurTech disruptors.[i]
From geckos to good neighbors, helpful dogs and the unexpected, insurers employ large advertising budgets to ensure that their brand becomes a household name, but what happens from the time a customer enters your door (whether virtual or through an agent) and the moment they receive a quote will play a bigger role on whether they make a purchase than the marketing tactics you employ. If you’re bogged down by product silos created by disconnected back-office systems and a lack of automation, you could be losing 36% of the customers coming to your door.
Ed is the operations leader at a major insurer. His company offers customers a great product, but with their competitive pricing and a sky-high marketing budget, margins are tight. As a result, Ed is always under pressure to increase his unit’s efficiency and optimize costs for his product line through operational improvements.
Anne is shopping for P&C insurance. She’s frustrated with her current carrier and looking for an insurer who better understands how she likes to shop and meets her needs for fast, efficient purchasing. If you wanted to secure Anne’s business, what would you do?
So, you’re spending millions on advertising, everyone knows your name and you’re seeing heavy traffic on your site. Now the question is, how do you boost your conversion rates to turn more of those visitors into customers?
Contrary to popular predictions, direct-to-consumer digital distribution isn’t spelling the end of agents in P&C insurance. Sure, interest in the D2C market is substantial, with 58% of consumers indicating a strong desire to purchase coverage online,[i] but the simple truth is, consumers still like their agents.
Growing revenue 24% in five years with a direct-to-consumer digital strategy isn’t a bad deal, but it’s one that a lot of insurers don’t seem to be seizing with gusto.
On May 3rd of 2000, then president Bill Clinton wrote a memorandum to the heads of executive departments and agencies within the government. In the memo, he said, “Memorial Day represents one day of national awareness and reverence, honoring those Americans who died while defending our Nation and its values. While we should honor these heroes every day for the profound contribution they have made to securing our Nation’s freedom, we should honor them especially on Memorial Day.”
The insurance industry is undergoing an incredible transformation. We’ve been saying this for some time, so we were really excited to attend an entire event dedicated to the changes occurring across the market. From new products, emerging technologies, digital distribution and InsurTech, to the emerging autonomous revolution, Dig|In: The Digital Future of Insurance, covered all of the hot topics impacting the insurance industry.
The Financial Times Live Insurance Innovation Summit: Exploring New Technologies, Products and Processes held in April highlighted the major challenges facing insurance organizations today, mainly the need to embrace new technologies while still foundering under the load of “legacy systems, outdated processes and bloated organizations”. For readers of this blog, this isn’t exactly breaking news, but don’t lose heart. This event was chock-full of powerful insights.