This edition of StarInsights will focus on the future of the Global Insurance Industry, while also concentrating on the effects that technological innovations will have on the industry.
The global insurance industry, despite the world economy showing signs of strong growth, is in a state of anxiety and pessimism as structural and technical changes continue to influence the industry. An “anxiety index” published in a study by PwC, found that insurers are more anxious in 2017 than in 2015 regarding the risks the insurance industry is facing. This is due to the digital disruption wreaking havoc in various categories of risk. In particular, the categories “change management” and “technology” ranked as the two highest risks for life insurance and non-life insurance. These risks are not surprising. They reflect the overall concern insurers have regarding digitization and innovations in technology as they continue to challenge the traditional insurance structures.
“Insurers who anticipate and plan for change can create their own future.”
– PwC Insurance 2020: Turning change into opportunity
As the rise in social media, smart devices, big data, and artificial intelligence (A.I.) continue to grow, so will the number of insurers who find themselves left behind by the rapid change in customer expectations. Those surveyed by PwC cited which technologies, in their opinion, are leading the disruption in the market. Driverless cars, A.I., genetic advancements, cybercrime, blockchain, smart homes, etc. are some of the innovations causing the most disruption for insurance enterprises. Advancements in technology are giving Chief Strategy Officers and Chief Risk Officers the tedious task of designing future-focused strategies in an industry that is in need of major restructuring due to current and expected disruption.
The Route to Digital Innovation
If insurers expect to engage with customers more efficiently, they will need to better understand their customers. Today’s average customer has significantly higher expectations for insurers, along with a skeptical perception of traditional insurance practices and advertising. According to an article published by Forbes, “By 2021, most of your online purchases will be made straight from your smartphone.” This trend is only expected to continue as millennials and Generation Z come to age and gain more influence throughout the world.
“Millennials will not accept the traditional way of selling. They will not want an agent to come to their living room to explain insurance. They will want to do that on their own computer or smartphone. Getting this right over the next 12-24 months will determine a firm’s future.”
–Andreas Freiling of Ernst & Young, EMEIA Insurance Leader
eKomi cannot stress enough the importance of having great customer relationship management throughout an organization. We encourage companies to follow our lead by making customers the center of gravity at all times. Insurers should seek new ways to not only engage their customers but also ensure a positive CX for your customers to develop more brand loyalty. The easiest way to achieve amazing CX is by using technology to analyze the data you have received from your customers to provide insights as to what your customers want from their experiences.
“86% of insurance CEOs believe technology will completely reshape competition in the industry or have a significant impact over the next five years.”
-PwC Insurance 2020: Turning change into opportunity
Artificial Intelligence (AI) is here to stay. Looking to the future, AI is the biggest innovation across all industries. This technology is capable of sorting through more data and information at a rate that would take humans years to detect. Within the insurance industry, the amount of data is growing at a record rate. The rapid evolution of technology in the global insurance market will make it tough for companies to keep up. However, at eKomi, we help business leaders prepare for the opportunities that are ahead in the near future. We empower our partners to act with confidence when making strategic decisions, especially regarding CI and CX.
Take mobile marketing to the next level
Better smartphones, fancier gadgets, and faster internet are all soon to come. Currently, wireless operators provide 4G networks as their most innovative service to the world. 4G networks have the capability of allowing two devices to communicate with one another at a speed of 50 milliseconds. With 5G networks, your phone will be able to communicate with another device at a speed of just 1 millisecond. 5G networks are expected to be introduced in the year 2020 (see article) With the amount of power that 5G networks will be capable of, innovations after its initial release are expected to be ambitious and contagious.
Specifically looking at mobile devices, along with the faster connection, companies will find themselves very soon needing to create customizable and refined experiences for their customers to promote mobile consumption. A great way to achieve this is to create a user-friendly app that focuses on user experience and has a fast interface. In the figure below, we used data collected from a survey by PwC to express the change in customer expectations and needs regarding digitalization. 71% of consumers use some form of digital research prior to buying insurance. Research may include, price checking or checking social media for reviews.
eKomi embraces the technological revolution taking place, and we understand the importance of digital transparency. Our technology and products are provided through cross-channel experiences regardless of what device you own, and through this, we provide efficient communication between our partners and their customers. eKomi wants to be with you while you are on-the-go and simplify your journey so you can focus on other tasks. eKomi’s services being available across all platforms is to bring convenience to your company, as well as, achieving the highest response rate from your customers. As technology becomes more efficient and faster, so will our technology here at eKomi.
In figures 5 and 6 shown below, eKomi displays the average time spent browsing on mobile devices, as well as the personal use of various devices by country. Both of these graphs are from a global perspective that displays mobile devices becoming increasingly popular throughout the world. This is not only a trend being seen in developed and rich countries but also nations where Internet use is fairly new. Especially throughout South East Asia, countries are particularly interested in digital content meant specifically for smartphones. As Internet use becomes more widespread, you can expect the demand for mobile content to increase as well.
Introducing, eKomi’s Starinsights, a blog series dedicated to data journalism and the importance of reviews and ratings.
eKomi’s industry correspondents provide a clear and focused overview of the companies with the highest quantity and quality of user-validated ratings and reviews within a given industry.
This edition of StarInsights will highlight the Global Insurance Industry.
The Global Insurance Industry
Allianz is the Global Insurance Industry leader for this edition of eKomi’s StarInsights. With 17,081 reviews collected and a rating of 4.9 out of 5 stars, Allianz is above and beyond the rest of its competition and a great example of the success that can be achieved through eKomi.
Following Allianz is AXA with 13,388 reviews collected. The company also earned an impressive average rating of 4.3 out of 5 stars. Following next is Ergo with a star rating of 4.8. Allianz, AXA, Ergo and AIG Direct are all partners of eKomi.
Finishing in 4th is Google Survey partner, Blue Cross Blue Shield, with 909 reviews collected and a rating of 4.4. Following BCBS (in order), is United Healthcare, AIG, Aetna, and Humana. Humana received the least amount of reviews (311) and Aetna receives the lowest star rating (3.5).
Figure 9 indicates that eKomi collected and published the majority of all reviews for the Global Insurance Industry. This past year, eKomi has gathered 36,178 reviews for the selected insurers, while Google Surveys gathered just 2,230.
We hope this report will continue to foster the importance of reviews and ratings within the Global Insurance Industry and help promote the use of innovation to contribute to the economic and social development throughout the world.
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