The first principle of business – the customer is always right – has become even more important in today’s insurance industry.
A few years ago, insurers were jumping on the technology bandwagon and although it’s still an important aspect of business, technology is taking second place to consumerisation with regards to innovation.
The industry is now recognising that innovations in that sphere have to work in conjunction with catering for an increasingly demanding consumer if it is to stay relevant in today’s marketplace.
Scott Gunther, Senior Manager, Proposition Development at CGU, says the customer-to-business relationship is now one of the most important as the industry moves into the digital age.
"Insurance is recognising that its innovations have to cater for an increasingly demanding consumer."
“There is a greater need for business to make sure the customer is the forefront of innovation,” he says. “The best businesses have shifted their focus to the customer, like Google has done, and that is now where the customer bar is set. Customers are now engaging with every other industry in the social and digital space.”
Gunther says the past two years have shown insurance companies that it’s not about whether they should move into the digital age, but the fact that if they don’t, they won’t survive.
“It’s a digital reality check. Consumers are in control. They are telling us what they want and how they want it. Customers have completely shifted so the insurance industry must as well,” he says.
Gunther says CGU is working with its own clients to ensure they adapt to the digital world by developing strategies.
“We want to show our clients how they can use digital tools to help them – developing websites, email marketing, mobile commerce – it’s the same digital strategy we use at CGU,” he says. “We’re telling our clients they should now be thinking about 2015 and not 2012 and to think about the digital channels that would work best for their own situations – social media marketing, mobile marketing and cloud technologies. We are trying to move them away from the legacy of the IT solutions.”
Service is where insurance companies are finding the edge – customer preferences are changing and new access options are expanding. With a growing mobile market, consumers want innovative ways to shop for and manage their insurance.
Meeting the demands of its clients meant the Stream Group had to rethink its 40-year-old business model to encompass digital streamlining in its operations. Innovation meant taking into account what its customers wanted regarding a more flexibleand efficient claiming process, so the company pioneered the complete building repair claims management process within Australia and New Zealand.
"It’s a digital reality check. Consumers are in control, telling us what they want and how they want it."
“The focus in the industry has been heading towards customer service and relations, quite possibly due to the significant amount of negative press and feedback received by the industry as a whole over the past year,” says Don McKenzie, Managing Director of the Stream Group.
“The Flood Inquiry in Queensland highlighted the entire industry was under-resourced as claims handlers, assessors and case managers were in short supply; this led to delays and communications issues between customer and client.”
Stream Group listened to customer feedback and developed a Customer Portal – an interactive portal with the ambition of creating a better and more streamlined claim experience.
The success of the product was recognized in the IBANZ General Insurance Industry Awards in November, with Stream Group NZ picking up the Innovation of the Year award. The product also contributed to Stream Group Australia winning the Telstra Business Awards’ Queensland Business of the Year Award in July.
“The portal also follows the general trend of consumers’ greater engagement with online resourcing; as well as their use of mobile devices to increase up-to-the-minute accessibility,” McKenzie says.
“We also created an iPhone app after a need was voiced by our building consultants for a video function that allows pausing and longer periods from their phones.”
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