Recalibrating Insurance for the future
Bryte, South Africa
“Insurers need to accept that the digital revolution is here to improve how business is conducted.”
In a world shaped by shifts in innovation and business efficiency, clients will require optimal services from insurers with professional relationships that support the management of future risk. The new digital age and intelligent technology at our disposal will inform future engagements and transactions in the industry. This will likely place the risk manager’s ability to adapt and recalibrate at the centre stage.
The insurance industry is responsible for providing strategic and timely risk management advice in partnership with its business partners. Insurance statistics have always been the bedrock on which insurers can effectively predict future outcomes. As technology becomes critical for business success, clients will rely on risk managers who can partner with them through risk moderation. This also includes implementing early warning systems that mandate strict adherence to operational, safety, and health protocols to respond to emerging challenges timeously before they become issues and crises.
Disruption has created an opportunity for businesses to identify innovative ways to operate at lower cost. However, cost management will not rest solely with insurers. For efficient and effective risk management, the entire insurance supply chain must work together on this journey into the digital future. Insurers and intermediaries can also reap the benefits if they can re-evaluate rigid or limiting approaches, consider the effective use of the value chain for end-to-end risk management solutions and prioritise swift, effective responsiveness.
The benefits of technology – agile innovation, connectivity, efficiencies, speed, and greater intelligence – are becoming increasingly evident. Businesses will view the future differently, with the innovations and risks that come with it. Disruptions such as low interest rates, rising global tensions, supply chain disruptions, and power outages affect clients in numerous ways. Risk managers are increasingly viewed for their ability to transfer risk away from customers, enabling them to focus on sustaining their businesses and participating in economic recovery. Risk management, however, is a 3-pronged partnership among the insurer, broker, and customer. Therefore, more collaboration should become the order of the day when seeking beneficial solutions.
More consideration needs to be given to creating loyalty programmes and add-ons to add value to the customer’s portfolio. These incentives may need to be tailored to each customer or business requirement, as needs may differ. However, the common aspect will always be the settlement of claims. In this instance, insurers will be challenged on their ability to utilise services and enhancements that quickly assess and settle claims.
Insurers and intermediaries will be required to improve their relevance and the value they add to customers. To enhance and remain relevant, the industry will be expected to:
- Enhance underwriting to offer bespoke, uncomplicated products and solutions that minimise risk and are price competitive,
- Expand multi-platform accessibility. Increasingly, customers expect 24/7 service, with many demanding near-real-time responses. Self-service options (through chatbots) are becoming a mainstay, and more are turning to social media rather than traditional business engagement channels,
- Implement best practices for customer service excellence and risk management,
- Ensure seamless processes for timeous claims resolution,
- Engage in partnerships that strengthen operational capabilities – from complementing your value proposition to introducing more technologically savvy systems/processes to enhancing productivity and efficiencies.
Companies need to accept that the digital revolution is here to improve how business is conducted and understand that fast-tracking the industry’s digitisation will help it grow its customer base and remain valuable to the whole value chain.
