One is the loneliest number (or, why insurers need partnerships)
In the fight to remain relevant, insurers must shift to become living businesses. And in order to become living businesses, they need smart partnerships.
In the fight for relevancy, insurers must become living businesses. They must continuously adapt at speed and scale, to maximize customer relevance and sustain growth. They need a profound and dynamic understanding of their customers and the risks they face. They must use data and analytics to derive customer insights, and convert this insight into meaningful, more timely actions. These actions should be synchronized with key moments in the customer’s life.
Why are partners so crucial? Compelling reason number one: capital. Being a living business depends on fostering additional customer touchpoints, and on their own, insurers don’t have the capital to build them. Compelling reason number two: Data. While insurers use data all the time, they don’t typically mine it to extract customer insights—and definitely aren’t as adept at doing so as the GAFAs are. Even if they were to begin today, they would be behind the curve.
What’s more, the right partners can extend an insurer’s reach to new customers and create additional touchpoints. The right partners can also provide critical customer insights to enable insurers to make superior decisions about pricing and product design. So instead of seeing rivals, insurers should see allies. Instead of challenges, insurers should see opportunities. Are the GAFAs competition—or are they potential partners for data-driven distribution and improved customer engagement?
Vitality offers life insurance and much more
Quick, think of one word to describe the process of getting a life insurance quote. Inconvenient? Slow? How about…fun?
South Africa’s Discovery has reimagined life insurance through its Vitality health management and loyalty program, its smart partnerships and a digital-savvy quoting process. Visitors to its online calculator answer questions to see how their lifestyle choices affect their premiums. Everything from medical appointments to grocery budgets are part of the equation, and as you answer questions, you can watch your status ratchet up the ranks, from blue to bronze to silver to gold. At the end, you get an account of how much you could save on premiums, how your lifestyle will affect your life expectancy and what discounts you can enjoy with Vitality’s partners.
While disruption has upended other industries, insurance remains mostly unchanged. However, in a digitally driven marketplace, high performance means moving beyond the status quo. To thrive, not just survive, insurers must shift to become living businesses. By becoming hyper-relevant, and acquiring the ability to adapt at speed and scale, they can capture emerging opportunities, tap into new profit pools and delight their customers on an ongoing basis.
The truth is, not all insurers will be able to transform themselves into living businesses. But those that do could tap into an estimated $375 billion in potential revenue. Those that do could enjoy stronger customer relationships and enhanced loyalty. Those that do could bring products and services to market that we couldn’t have imagined a few years ago. Those that do can face the future, fearlessly.
Partnerships range from healthcare providers to those who provide data on customers’ lifestyles—such as grocery retailers and health clubs—and others that offer rewards for a healthy lifestyle. These rewards include things like discounts on wearables, sneakers and gym memberships, as well as fun things like travel discounts and movie tickets. Not surprisingly, insurers around the world have partnered with Vitality to offer their customers a more engaged, holistic life insurance experience.
This article was previously published on insuranceblog.accenture.com
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