Swiss Re’s latest Sigma report has highlighted the effect that growing granularity of insight into customer behaviour is having on the role of insurance.
Insurance’s role, Swiss Re says, is evolving from indemnification of losses to a broader consultative service on risk prevention and mitigation covering both private and commercial clients’ changing needs over time.
While consumer-supplier touchpoints will become predominantly digital, human interaction is expected to continue to play a role vis consumer feedback and analysis.
The report notes how the availability of internet-enabled devices and universal connectivity has changed consumer behaviours and expectations, particularly among younger generations.
Empowered with digitally-facilitated information, consumers expect rapid access to information, transparency, and more personalised purchase experiences relevant to their lifestyles.
“As a result of digitalisation, insurers now have direct connection to their customers“, says Jeffrey Bohn, Chief Research & Innovation Officer at Swiss Re Institute.
“With the availability of granular data, insurers can better segment customers enabling them to develop new tailored products & services, and refine existing ones in real time. This benefits customers and insurers alike.”
The report also highlights the import role emerging markets have had in optimising the potential of different data sources and consumer touchpoints.
Players in these ,markets are partnering with established digital platforms and ecosystems to combine features typically offered by standalone incumbent firms into a one-stop-shop service.
Insurers bring underwriting expertise, while platforms and ecosystems offer access to customers through an ability to target specific segments and mine user behaviour, as well as offer multiple touchpoints to capture user attention.
Lastly, Swiss Re notes the important role regulation will have in supporting the integration of new technology and data into insurance business across different jurisdictions.
In monetising the potential of digitalisation, insurers will need to manage local data protection and privacy requirements.
Longer-term, the report stated that successful insurers will be those that can leverage insights from their investments and partnerships in data and analytics, and develop compelling risk protection solutions aligned with evolving regulations.
