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How Transformation Can Help Insurers Win With Rapidly Evolving Customers
Insurance brands must find new partners, focus on value-added services and transform their business model.
Insurance customers’ needs are rapidly changing, but the industry is not. With insurtech companies – like Hippo, Root and Lemonade – overwhelming the market, longstanding insurance leaders can’t shake organizational norms and industry standards, preventing them from connecting with digitally native consumers ahead of new disruptors.
We often hear our insurance clients ask us, “How can I best prepare for the future needs of our customers?”
Insurers are ready to mobilize their transformation efforts to become more customer-centric businesses, but they often implement new technologies or point solutions without a clearly defined digital strategy to guide their efforts. Without a holistic understanding of digital transformation (which goes well beyond technology implementation), insurance companies miss the mark with their customers. They struggle to find the true sweet spot between consumer privacy and personalization – while providing the right level of transparency and autonomy. Not to mention, customer expectations are changing each day making it extremely difficult for legacy insurers to keep up with their demands.
“Without a holistic understanding of digital transformation insurance companies miss the mark with their customers.”
Prophet’s new research report, The Insurance Customer of the Future, was written to highlight the most pertinent market trends set to impact the insurance industry in the next decade and explains how these trends are changing the relationship between customers and their insurance providers.
We centered the research around “Jamie,” an insurance customer living in 2030. By understanding and anticipating the generational trends and technological possibilities that will shape Jamie’s environment, insurers can make the right transformation moves to win Jamie’s – and her peers – business in the future.
But it won’t be easy to become the kind of insurance company Jamie wants to choose. While battling new entrants and advancements in technology, insurers need to keep their ever-evolving customers’ needs, values and expectations at the center of their transformation agenda.
Here’s how insurers need to transform their businesses over the next decade:
- Go beyond personalization
- Find partners to build holistic ecosystems
- Transform business models to serve next-generation customers
- Double down on capital-light, value-added services
- Reimagine the mind, body and soul of the organization
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FINAL THOUGHTS
Plain and simple: the insurance industry is ripe for disruption. Insurers will either be disrupted by insurtech or be the disruptors. By prioritizing these five core areas as a part of their transformation agendas, insurers will cater to their future customers and achieve the disruptive growth they crave. The report gives insurance leaders the research, insights and ‘action items’ needed to capture the future market and create a new standard for customer experience within the industry. Read the report today.
Are you looking for a partner to usher you along your customer-centric transformation journey? Prophet can help. Reach out to our financial services team today.