Insurance in a digital world

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The digital era is expected to transform the insurance industry radically, forcing old business models out and offering an array of opportunities to innovate.

The digital revolution is underway, and the insurance industry is no exception. Today, every insurance companies is expected to offer increasingly innovative solutions to grow their top and bottom lines and retain customer loyalty. Insurers are constantly hearing about digital marketing, digital distribution and new digital technologies, such as automation and machine learning. But what does any of this really mean for the South African insurance industry? And how can insurers find their feet in the digital world?

To start, executives have realized that to remain competitive in a digital world, insurance companies need to go far beyond the addition of a direct sales channel or a few automated processes. Many, if not all, organisations require a fundamental shift in the foundations of their corporate culture. Insurance has been relatively slow to feel the digital effect up until now, but the industry is changing quickly and we predict that those who do not adapt will be left behind.

The challenge is this: recognizing the urgency to carry out a complete digital transformation, and knowing how to manage one, are two completely different ball games. Any executive who’s currently implementing one will agree that a change so transformative is one that should applied to every part of the organisation. But this is no easy task. Digitisation involves changing the entire value chain – from all business activities and tools, to customer relationships.

Digital transformation sounds daunting, but it’s the key to an easier way of working. It offers insurers new and simpler ways to approach communication & data sharing, business processes, and data management techniques. Today’s customers are so used to enjoying the benefits of modern technologies on a daily basis that it’s crucial that insurers come up with innovative and tailored solutions that meet their expectations.

For example, consumers are now connected continuously and expect immediate responses from whoever they’re working with. This gives insurers an opportunity to engage directly with customers and achieve primary market research with ease. Here, it’s important that insurers upgrade communication methods to better respond to these customers and remember to really listen to what they have to say. These valuable insights should be used to develop real customer solutions.

In a recent Global Insurance Survey, Ernst Young uncovered that 40% of consumers select their insurer based on the quality of the interactions they’ve had with the company. Therefore, it’s in an insurer’s interest to employ a multichannel approach to operation, making use of chatbots, call centers, mobile applications, and other modern tools that help provide a seamless customer experience.

In 2021, the power continues to shift into the hands of the consumer. If insurers want to stay competitive, they have no choice but to keep up with the modern customer’s demands. This alone requires a totally new set of skills, corporate culture and measurement processes.

Digital capability is key to the success of insurers, today and in the future.

The only way forward is for a company to learn as it goes and figure out how to apply lessons as scale is built. – Mckinsey.

At Fulcrum Premium Finance, we understand that the future is now and that any time spent delaying the shift to digital is time wasted. This is just one of the reasons we recently refreshed and relaunched our website – to offer our customers a more seamless and enjoyable user experience. This goes hand in hand with our seamless, tailored Premium Finance solutions.

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