For many, tech has been a huge industry disruptor which has, at times, jeopardised the continuity of insurers’ and brokers’ business models. But could certain marketplace innovations bring firms closer to their customers? And is this move important? Nick Ashmore from ResponseTap offers his thoughts…
Mention ‘insurtech’ to many industry professionals and the very term will send shudders down their spines. It’s perhaps understandable – the emergence of automated platforms and other traditional distribution channel disruptors have rocked the world of insurance significantly.
In fact, in a recent conversation with Neil Grimshaw, a chartered insurance broker and director at Ravenhall Risk Solutions, he boldly stated that over the last 30 years: “Fundamentally, technology has changed the industry beyond recognition.”
However – and this was a point that Neil agreed with – not all tech innovations exist to pose a competitive threat. Some can actually
enhance an insurance provider or broker’s offering.
The role of the phone
For Neil’s firm – which focuses largely on commercial insurance products for business clients – the phone is still the most important tool at hand. He cites the contributing reasons as the complexity of the purchase, the unquestionable value of the asset being insured and perhaps also the confidence levels of the customer. In a market which he believes still boils down to trust, he feels the phone helps maintain the ‘human touch’ and the role of the professional advisor.
But firms should not be mistaken for thinking that the phone only matters in the B2B space. The buying of insurance is fraught with complexities, even for seemingly more simplistic or commoditised products such as consumer home or motor insurance. Online it can be hard to differentiate from one policy to the next, but the ratings and location of the insurance underwriter, plus the underlying technical nuances of every schedule of terms, can vary greatly.
It therefore boils down to the customer’s perceived need for human interaction to alleviate the apparent risk associated with the insurance buying process.
What do customers want?
In this respect, does the phone remain a crucial channel for every broker or insurance provider? No.
An
Accenture report, which highlighted the behavioural differences and preferences among three consumer groups, indicated that some individuals are perfectly content with an ‘online only’ experience. These ‘Nomads’ differ greatly to the ‘Hunters’ who make price-driven decisions but demand a high level of service and value human advice.
Such insight reinforces the relevance of advice provided in a Bain & Company report, which urged insurance companies to get closer to their customers and, ultimately, redefine what it means to be a provider to them.
Admittedly this might be tough, but tech is not the enemy. Instead, it can help to uncover data – and therefore
opportunities – associated with different customers’ often multichannel journeys.
Uncovering call-related data
There are many ways to unearth call-related data. In the simplest of terms, organisations can attach a unique telephone number to every single customer, to help analyse their behaviour or action prior to them picking up the phone. As a result, tech can then uncover what made the phone ring.
It can tell an insurance business what online research the individual carried out beforehand, which Google search-term kick-started the process, and/or which marketing campaign prompted the call. Consequently, the conversation – and the advice provided – can become far more contextual and helpful, which increases the likelihood of a sale, not to mention the level of customer satisfaction.
This is just one example of tech that can act as a real ally in the insurance sector, not a threat.
The use of the phone has drastically changed people’s buying habits over the last 30 years, and nobody has a crystal ball to say what will happen next. But when it comes to achieving the highest returns and delivering the greatest possible customer service, conversations will undoubtedly remain crucial for some time yet – certainly for brokers.
With clients ranging from Aviva to CRL Management, ResponseTap is a Call Intelligence platform provider to the insurance sector. The views expressed within this article are not necessarily reflective of Insurance Business.
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