What are the big trends driving change for today's digital insurers? The focus is on the consumer - and industry advancing enterprise digital technologies.
Today's insurers don't have it easy. There are escalating pressures for customizing the design of benefits plans and programs, as optimizing benefit portfolios to deliver desired outcomes - all the while focusing on creating and sustaining a digital customer experience to meet the needs of all consumers, from pragmatic Baby Boomers to mobile-friendly Millennials.
Make no mistake, this is no easy task for insurers braving digital disruption.
Insurers today are pushing to higher levels of customer support and service as they brave the digital disruption impacting the insurance market.
With today's consumers expecting innovative, personalized approaches to benefits planning, as well as the opportunity to leverage digital portals for educational programs, communications and enrollment, it is truly the dawn of a new time for the insurance industry.
What are five trends driving change for today's digital insurers?
- Building a Better User Experience: Redesigning the consumer consumer enrollment experience to include personalization and user-friendly tools that help with calculations and planning build a better customer experience. Consumer behavior, particularly in the health plan market, is changing, and there are challenges and opportunities associated with this very real, very digital change. Consumers today have digital connections with most of their vendors and suppliers – banks, Internet providers, various utility companies, airlines, retail stores and more. These consumers expect the same modern experience with their health plan provider. It’s simply no longer good enough to provide a 'better' user experience than industry peers - insurers need to deliver user experiences that match, or surpass, the digital engagement experiences consumers are engaged in with other industries.
- Optimizing Advanced Analytics: Deploying advanced analytics solutions will make it easier for benefits administrators to aggregate large quantities of data in a manner that is effective, efficient and pragmatic. For instance, advanced analytics that compile health data from various sources and translate this information into actionable information that can aid and support today's employers in identifying health care cost drivers, not to mention optimize benefits plans to better meet workforce needs - such as disability. By engaging advanced analytics, insurers have the opportunity to design benefits that can provide adequate coverage without incentivizing the poor workplace behaviors.
- Optimizing Employee Benefit Programs: Benefits optimization is an approach to designing a portfolio of employee benefits that maximizes desired workforce outcomes against a given benefits budget. Benefits optimization strategies help employers optimize their workforces in terms of the investment they make in their benefits packages and overall benefits program, with employee productivity, talent attraction and employee retention in mind. Recognizing that benefit plans may be designed to drive employee behaviors, many employers work with benefits brokers and consultants to optimize benefits using broad frameworks that span group benefits, health and wellness, retirement, and compensation.
- Launching a Better Communication Portal: What is more important than the customer experience? Leading insurance carriers today are pushing to to bring about a digital transformation in the way they communicate with customers - especially Millennials. Today's insurance carriers are clear about the urgent need to act in response to changing customer expectations. Today's insurance buyers are seeking everything from online purchase funnels and forms to quick quotes presented in a rapid, almost intuitive way as they review their benefits options on their mobile phones.
- Going Mobile: According to Forrester, for many insurers, mobile has moved from being a fun experiment to a crucial element in the customer experience. Industry predictions assert that industry leaders will spend and orchestrate massive investments in the tens to hundreds of millions of dollars in technology, systems and processes to engage consumers effectively on mobile devices. In fact, mobile tops the list of what insurers are increasing their technology management spending on at this time.
Oct 13, 2016
The Digital Insurer
Today's insurers are implementing leveraging digital technology to support improved transaction workflows, extract actionable data for use in customer communications or sales and marketing efforts and eliminating manual processes, such as sorting, data entry and validation. They are pushing to deliver mobile access to facilitate real-time interactions. Insurers are exploring the implementation of custom portals to support a better user experience for agents, brokers and customers - improving customer communications across all channels. For the emerging digital insurer, there is no time to rest - no moment for complacency. The digital disruption impacting the insurance market is sculpting today's competitive insurers in new and different ways.