CX in the Age of Digital Insurance: What to Do, and What’s at Stake
Vivek Gujral, Chief Technology Officer
In the year 2000, Blockbuster had an opportunity to buy Netflix for about $50 million. Today, Netflix is worth over $80 billion and Blockbuster is little more than a memory. Are insurers facing a similar choice in their need to embrace digital technology and recognize the threat of emerging digital competitors?
In this article, we’ll discuss what constitutes a compelling digital insurance experience and address some of the challenges insurers face in creating it, and most importantly what’s at stake.
What is “digital” anyway? The term has often been used to signify little more than online alternatives to various aspects of insurance sales and service. Ultimately, it means the recreation of all insurance documents and processes in digital form. However, for this article we’ll focus primarily on its meaning for customer experience. This is essentially when the selling and servicing of insurance are entirely technologically based, where technology can facilitate direct communication in better ways, and ultimately minimizes the need for human interaction when purchasing or servicing an insurance policy.
This digital approach to insurance represents a departure from traditional methods to insurance customer interaction. It is a further step on the long journey from policy and business unit orientation to customer orientation, and it requires greater interaction between business and IT. As the pace of technology change accelerates – and with it the changing expectations of consumers – business executives need to communicate with greater clarity and frequency to their partners in technology. At the same time, IT needs to become more aware of the struggles that business leaders face.