It’s one of life’s necessities. We all need it, but we’re not particularly interested in it… until we need to make a claim. Let’s face it: Insurance has a fusty reputation. But things are changing. Digital technologies combined with disruptive market forces are compelling the industry to become a whole lot sexier.
Accenture’s Market Pulse Survey 2016, which measures current consumer behavior and attitudes in Belgium, indicates that more than 80% of consumers are loyal to their insurance provider – be it more out of habit than because of satisfaction with the service they receive. This finding is also reflected in our survey conducted with BZB Flanders.
Satisfaction levels are especially low when it comes to the apps and websites currently on offer. Only 55% of consumers are satisfied with self-service solutions offered by insurers and even fewer (49%) with technology innovations introduced so far by the industry.
It’s often about simple, obvious things… Consumers get frustrated when insurers repeatedly ask for the same information, or when offers are not consistent across different communication channels. The digital generation, permanently connected via mobile technologies and social media, demands a consistent and personalized experience.
Market turbulence
It’s not only consumers’ shifting expectations based on experience in other service industries that are disrupting the insurance sector. The challenging economic climate (e.g. persistently low interest rates, uncertainty due to Brexit…) puts pressure on insurers’ profitability and makes life savings products less attractive for consumers.
New regulations such as TwinPeaks, IMD2… add still more pressure, requiring huge investments from all actors in the sector. Insurers need to invest in new risk-adjusted models to comply with new capital adequacy rules of Solvency II. Brokers and agents need to make their commissions more transparent, prove in-depth knowledge of the products they sell and demonstrate that they advise consumers in their best interests. This triggers consolidation amongst distributors: the number of brokers in Belgium continues to decrease by 10% per year.
New entrants are also disrupting established insurance companies and business models. Today, two out of three consumers would consider buying insurance services from newcomers such as Google or online insurers.
Insurance as a lifestyle product
As a result, exciting new products and services are emerging. Here are a couple of examples:
- Pay as you use: New entrants are bringing a more customer-centric approach to the value chain: Insurance ‘as a service’ is emerging. Take for example Intrasurance in the Netherlands, an online platform offering usage-based insurance leveraging the Internet of Things: Telematics solutions in cars, smart energy meters at home and health monitoring devices for our bodies. We are beginning to see this trend emerging in Belgium, where insurance companies are experimenting with innovative usage-based products in car and health insurance. Traditional companies are starting to join forces with other players, often startups, in a larger ecosystem of suppliers that can offer bundled services and products to consumers.
- From protection to prevention: By defining customer journeys for key life events, insurers can tailor their offers to fit the customer’s best interests, as opposed to offering generic one-size-fits-all products. Tailored products, supported by analytics, can also achieve damage prevention rather than protection. Big data collected from telematics solutions in cars or health apps (wearables) can help you to lower risk and in return, increase your loyalty through complementary services or reduced premiums. For example Discovery Vitality, a South African insurer, offers its customers a health improvement program. It actively coaches consumers to manage their wellness, grants immediate rewards to drive positive behavior and reflects that in the premium as well. In Belgium, 50% of all consumers would be willing to share personal information to insurers in return for such benefits.
New Insurance, new career opportunities
Over the past decade, many large automation projects have been conducted by leading insurers in Belgium and abroad, especially in non-life insurance operations such as claims and policy management.
Today, the latest digital technologies are being leveraged to structurally transform business models, not merely automate existing ones. This transformation, from product- to customer-centric, also triggers a fundamental culture shift, requiring new skills and much more agile environments to quickly respond to ever evolving customer needs.
This is creating new career opportunities within the Insurance sector and at Accenture.
Insurance is shrugging off its old-fashioned image and fast becoming a magnet for young, talented Technology and Management Consulting professionals. They are attracted by the opportunity to be at the frontier of the New Insurance, helping organizations to innovate their business models, services and products, collaborate in a rapidly changing ecosystem, and implement the latest digital innovations: from Internet of Things, such as Telematics and Wearables, to Analytics, Robotics and Cyber security.
Keen to play a role in shaping the future of the New Insurance?
Accenture is looking for passionate individuals to join our growing insurance team in Belgium & Luxembourg.
Click on the open vacancies below for more info on the profiles we’re looking for in Belgium & Luxembourg or get in touch with me for a chat! See you in the market place.
Technology Consultant Insurance (Life & Non-Life)
Non-Life Insurance Project Manager
Management Consultant Insurance (Life & Non-Life)
Non Life Insurance Project Manager – Management Consulting
Insurance Project Manager – Vermeg/BSB Solife
