At the 2016 IASA conference, held in San Antonio, Texas - Novarica, Erie Insurance and ValueMomentum collaborated to present a session titled Digital Journey: From Strategy to Implementation. Matthew Josefowicz, President/CEO Novarica, who was one of the panelists in the session shared his perspective on digital for P&C insurance. During his presentation, Matt mentioned Novarica's report titled "The Novarica New Normal for P/C Insurers: 100 Data, Digital, and Core Capabilities".
These 100 capabilities spread across eight different functional areas of core insurance business - namely, Product development, Marketing, Distribution, Underwriting, Customer engagement, Billing, Claims, and Finance/Operations. These capabilities are again segregated into three primary technology areas: Digital, Data, or Core. This article discusses the capabilities mentioned under the customer engagement category in the Novarica report, which can be enabled using Digital technology for P/C Insurance.Digital technology enabled capabilities for customer engagement
Capability 1: Allow customers to share online access with third parties (e.g. attorneys, family, advisors, etc.)
Insurers can add value to customer engagement services by providing their customers the capability to share their account as separate profiles to third parties (close family members, advisors, attorneys, etc.) . However, as account owner, customers would have full control of defining what activities the third party members can perform using this capability.
Capability 2: Gamification of customer engagement (via wearables, apps, telematics, etc.)
Digital game-based learning and training programs have widespread usage in education. Lately, gaming tactics (reward, incentive, score, level, etc.) have been increasingly gaining traction in customer engagement initiatives too. As the insurance industry is adopting and integrating more and more IOT (Internet of things) devices to engage their customers, gamification of IOT devices has a promising future in customer experience.
Capability 3: Customized online video
Personalized online video is a new trend in customer engagement. Advancement in video hosting and distribution technology platforms made it possible to create and share videos with ease that are tailored to customer’s interest, demographics, and behavior. Content of the videos are crafted using personalized tokens to make customer feel important and valued for the organization, which goes a long way in developing longstanding customer relationship.
Capability 4: Co-Browsing with customer service representative
Co-browsing technology in customer engagement refers to customer representatives sharing screen with a customer for visual engagement. Today, customers want to access information instantly. A customer visiting insurer’s website looking for specific information can be guided in real-time using co-browsing to handhold and navigate website to find required information. Unlike basic screen sharing, co-browsing capability provides both the customer and the customer representative control of a sharing session. Co-browsing can provide customer instant help in filling complicated forms, reviewing documents together, presenting marketing materials, introducing new products to customers, and so on.
Capability 5: Manage and track communications preferences by channel and communication type
Effective communication with customer, partner and employee is a key aspect of P/C insurers' digital success. Today’s customers prefer to engage with their insurance provider using their preferred channel and communication type (i.e. verbal, nonverbal, written, or visual). Insurers need to be mindful of customer's choices, and manage and track customer communication preferences and communication type to keep customer engaged.
Capability 6: Mobile access to view relationship details, balances, key documents, etc.
Today, insurers are increasingly leveraging mobile platforms to deliver capabilities such as ability to manage end-to-end transactions, payment services, information sharing, getting road-side assistance, accessing insurer’s website anytime, anyplace, reporting vehicle damage amongst a host of other capabilities.
Capability 7: Online chat
Online chatting enables insurers to provide immediate responses to queries that customers may have while browsing insurer’s website. It's a great tool for those customers who come to insurer’s websites looking for quick information, rather than waiting for an email response. Besides, using an online chatting platform, customer service representatives can attend to multiple customers at one time .
Capability 8: Online recommendations engine
Online recommendation engine has become an integral part of ecommerce businesses lately, a tool that provides personalized shopping experiences to customer resulting in greater conversions. Insurers can leverage online recommendation engine to provide relevant recommendations to customers based on the analysis of customer's browsing behavior, social profile, demographic, risk profile, interests and a host of other analytics readily available.
Capability 9: Responsive social media engagement with policyholders
Social media is a recent phenomenon, which took everyone by storm including businesses. The insurance industry too is looking at social media as a platform to enhance visibility, build brand, build trust, listen to customer likes/dislikes, provide customer support and generate leads.
Capability 10: Same-day email response
There is no denying that same-day email response creates a positive impact in customer engagement and eliminates lag time in interactions.
Capability 11: Self-service change requests via portal or mobile
Insurers who are providing their customers self-service portals or mobile solutions that would enable them to post request for any change, track claim status, post an FNOL, etc. can greatly improve customer satisfaction, retention, and eventually create a competitive advantage in the marketplace.
Capability 12: Single sign-on for all products and functions accessible by role
Single sign-on user authentication service enables customer to use same set of login credentials to access multiple insurer’s applications. Single sign-on appeals to customers as it reduces password fatigue because of the need to remember and manage multiple set of credentials. This reduces time spent for re-entering credentials for the same identity and reduces IT help desk costs in assisting recovering forgotten password.
The aforementioned capabilities may not all be possible to develop by P/C insurers' in-house IT team owing to lack of expertise. Besides, insurers cannot afford the time and effort it requires to hire and train people to develop such capabilities. To better compete, insurer will need to partner and collaborate with technology providers outside the organization to achieve some of these capabilities.
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