Have you already checked the account balance on your smartphone? Maybe even on the way to work quickly filled at Amazon the digital shopping cart? Buying shoes, ordering books or making a bank transfer – not only the communication with friends and family, but also financial transactions are now online everyday for many digital natives.
So far, the subject of insurance: So much paperwork, complex operations, more than 500 vendors in the market and little overview. Hardly any consumer knows how many insurance he owns (!) And certainly not what he really needs it. No wonder that two of three insured with their – Attention Neudeutsch! – Experience are not satisfied. So do not spend more than absolutely necessary to deal with the subject, is the motto. Once insured, most people quickly put aside the file folder.
But the nagging feeling, “to actually have to deal with it more” remains. Also because we know that there would be a better fare somewhere in the market. Better performance, better price or simply better customer service for questions and damages.
The solution: Digital insurance management improves the user experience
Anyone who has been involved with insurance for a long time knows that the insurance industry is traditionally a slow business. Insurers without a digitization strategy may still be successful today, but customer demands are rising steadily. Amazon, Netflix, and Google have changed the way we consume products and services. Customers today expect simplicity, transparency and direct availability of all services – this also applies to insurance.
Thus, studies show that a simple and easy-to-understand offer insurance customers today is much more important than a personal consultation. Customers want to be able to communicate online and receive information via an app. Almost a third of Germans could also imagine taking out insurance via smartphone in the future. So there is no passing by on a digital customer journey. This has also recognized the insurance industry. Following the digitization of the retail and banking world, digital insurance management is becoming the norm.
This is how the digitization of the industry succeeds
The good news: There are numerous examples of how digitization can succeed in the industry. For example, the German family insurance: Only on the market for ten years, only 100 employees, but one of the innovation leaders in the insurance market.
The products of traditional insurers are very complex. Regardless of whether the insurer has a modern IT environment or not, the product remains non-digital and therefore always requires people to post-process. Anyone who, like Deutsche Familienversicherung, completely relinquishes these “old” products and tariffs can offer a true digital customer experience, for example with situational protection: A customer goes on a skiing holiday and switches on his accident insurance on the way to the ski lift only for the weekend , Digitization thus not only enables potential savings through the automation of processes, but also new business models at the same time.
Challenges for the insurance industry are the lack of digital mindset and employees for software development. Cooperations with Insurtechs come into play here. In addition to the digital know-how, they bring along the necessary mindset, flexibility and agility in the implementation of a digital product. Three out of four insurers – according to Capgemini World InsurTech Report 2018 – are already considering such cooperations in order to reach a digital customer journey more quickly. The cooperation between traditional insurers and insurtechs will continue to increase in the future. The aim should be to make optimum use of the respective strengths in order to make the industry fit for the future.
Digital insurance management helps to finally create order
In the end, the consumer wins: There are more than 436 million insurance contracts in Germany alone. But which insurance really needs? What is unnecessary? And what is the best way to get an overview of the numerous insurers, tariffs and your own needs?
Digital insurance management can provide clarity here. Consumers can now get an overview of their insurances in minutes and get tips on how contracts can be improved. Advantage: The apps are free and can be downloaded from the Apple App and Google Play Store. In addition, so are all your own insurance and the right contact always ready to hand “in your pocket”.
In addition, the digital insurance managers always automatically check the current market situation in the background and inform them if there are better offers and if the opportunity for a change is favorable. The insured will then be informed and can switch with a click. As a rule, consumers can save several hundred euros a year on property insurance such as personal liability insurance, household effects and more.
Human expertise complements the intelligent machines
Many digital managers have also recognized that even though the speed of the automatic review and creation of quotations is an important factor, consumers still want the opportunity to be given individual advice when in doubt. With an insurance app, we do not even have to leave the couch, but can get professional advice quickly and easily from home, by chat, e-mail or by phone.
Conclusion: Thanks to digitization in the insurance industry, consumers today already have more insight into insurance and save time and money. If even more and more insurers develop digital products in the future and tailor them more to the demands of digital natives, it could happen that “insurances” are no longer negatively connoted, but consumers love the feeling of being uncomplicated, fair and simply secured be.
Chris Lodde is CMO of digital insurance manager CLARK, founded in 2015. Prior to that, he was Head of Digital Banking & Sales at Commerzbank and was, among other things, Senior Manager at SMP Strategy Consulting, a leading consulting boutique for marketing and sales.