Digital technology is transforming every aspect of the property and casualty (P&C) insurance industry. Telematics, the sharing economy, big data, digital communications platforms, and an ever-changing competitive landscape have shifted the focus from products and process to a personalized customer experience.
Consumers are using insurance differently and have different expectations of their insurers than in the past. P&C firms need to be ready to respond with both technology and a comprehensive customer strategy when they interact with members.
It’s not an easy task. The “Amazon effect” means consumers expect the highest quality
experience with every interaction from every industry. At the same time, people have different insurance needs than they used to. Young adults are waiting longer to buy homes and driving less. Members want more personalized products and services to match how they live, and are willing to turn to non-traditional brands to find them.
Technology and data insight also offer a great opportunity to personalize the experience around the customer instead of focusing solely on products. Telematics, mobile apps, self-service, drones, and other advancements are changing products, pricing, claims, services, and other aspects of the industry for the better. And investors are willing to cash in: the burgeoning “insurtech” industry has reached more than $1 billion in funding, according to CB Insights.
All of these trends spark opportunities for P&C insurers to get smarter about their approach to members and how they do business. There is enormous potential to reduce cost and risk while improving relationships.
We have identified four potential areas of focus for P&C executives as the customer experience and technology intersect: next-gen product expansion, telematics, usage-based insurance, and chatbots.