Digital transformation is creating new opportunities for insurers to strengthen their engagement with existing customers and attract new customers through innovative products and services. However, too many organizations are slow to move forward, waiting to see what will happen instead.
In the past, barriers to digital interaction have included an older target demographic and increasing regulations — but the world is changing.
Digital-native startups are poised to take more and more business away from traditional insurers by offering cutting-edge products and user experiences modern customers expect. Established insurers must find new ways to deliver better digital sales and a frictionless customer experience.
But how can they catch up?
Establish Trust Over Digital Channels
The answer lies in building trust with digital customers. Trust enables insurers to move away from complex security processes that result in high abandonment rates without compromising on protection. This strategy enables them to deliver a more seamless user experience and improve self-service and purchase options.
Digital identities are the foundation of any digital transformation strategy. When an insurer can trust a user’s identity, it can create custom experiences and products that are tailored to that individual.
Trust can’t be built on a single piece of evidence. Insurers must create complex, layered understandings of their users. Organizations should look for digital identity solutions that include layers, such as behavioral biometrics, complex device ID, malware detection, global intelligence and more.
Gaining and Retaining Customers
Excessive authentication challenges are a significant impediment for consumers. They want the freedom to access accounts or buy new coverage anytime, anywhere. Give them too many hurdles to verify their identities, and they may seek other insurers who can provide the frictionless experience they demand.
Digital identities help insurers to lower abandonment rates and improve digital sales by providing a seamless digital experience. When customers are less frustrated, insurers can build innovative digital platforms and strengthen brand loyalty and reputation in the marketplace for customer service.
Protecting Your Reputation
Just as it is crucial for insurers to trust their users’ identities, digital transformation also relies on customers trusting their insurer. The insurance industry is built on reputation, and protecting that reputation requires strong security.
Insurers hold significant amounts of personal information about their customers. A single compromised insurance professional or provider account can expose hundreds of clients’ data to malicious actors. This is another reason why strong digital identity assessments are crucial to distinguish between legitimate users and criminals.
Digital Transformation Powers Confident Innovation
By embracing digital transformation, insurance providers can attract new market segments — particularly millennials, who place a high priority on mobile solutions. Insurers who fail to deliver these features risk being perceived as out of touch.
Those who collect accurate data and establish digital trust, however, are poised to offer tailor-made policies and products that meet their customers’ growing expectations for customization. In addition, tech-savvy insurers can use these digital tools to maintain regular contact and build even stronger relationships with their customers.
With so much to gain by adopting cutting-edge technologies — and so much to lose by falling behind the times — insurance providers should embrace the changes in the digital landscape and open the door to a full suite of fast, convenient and safe digital services.