Customers nowadays are much more demanding, and want to know that what they are buying is right for them and represents good value for the money. Regardless of the sector, one of the main things that the COVID-19 pandemic has highlighted more than ever is that consumers have become even more discerning, and are prepared to shop around to get high quality, easy-to-access products and outstanding customer service at all times.
One industry that hasn’t always blazed a trail of glory when it comes to product innovation, speed to market, distribution, and customer service is the insurance sector – both retail and specialty. Investors and savers, for example, want to know that a company is financially resilient and won’t go bust, that their savings and investments are safe, and that they will get a good return.
Equally, for people or businesses buying products, they want to know that those products are easy to purchase; that they do what they say on the tin; and that they are the right products in terms of relevance and value-add. What goes on behind the scenes to make this happen is almost irrelevant to them, but it is behind the scenes where many insurers face some of their biggest challenges.
Getting from the old to the new
One of the key issues for specialty (re)insurers is that they typically offer myriad different product types which are expensive and time-consuming to maintain – in many instances, across multiple jurisdictions – and which are supported by systems that are outdated and incompatible. Poor data quality in particular is a real issue for many insurers, who often have to grapple with inefficient processes and duplicated efforts simply to keep systems running.
This recent Frost & Sullivan cross-industry survey looks at some of the key drivers of the new insurance standard under which companies are driven to base their business models around up-to-date, flexible software solutions that adapt to the market environment – and crucially, the ever-changing needs of their customers.
Far too often, we see outdated back-office systems becoming an unwelcome drain and distraction. Instead, (re)insurers need to be targeting resources at priority areas which bring the most value to employees, customers, shareholders, and the communities in which they operate, including outstanding products and customer service, strong risk and reputation management, and superior financial performance.