Embedded Value: Insurers as Providers of Financial Security

The best time for insurers to transform from insurance seller to insurance provider has arrived. After the Covid-19 outbreak, people recognized insurance as a basic necessity. It has also been widely recognized during the first and second waves of the pandemic that insurers are not far behind healthcare workers when it comes to saving the lives of those who have been infected and also of those who have lost a member of their family there. .

The experience gained over the past two years has the potential to make insurers think very differently and challenge themselves to radically change the way insurers view their own business.

Insurance is a basic necessity

The pandemic has ushered in a whole new definition of the insurance business and rapid exploitation of the digital environment. Insurers have redefined their products, redefined their customers and opened up new channels to reach potential customers and serve them better.

Insurers today are debating how to provide solutions to customers based on the data available across the industry. For 360-degree protection of a customer who can protect their entire lifetime, insurers need to collaborate with each other and provide the customer with essential and cost-effective solutions. The traditional view has been to look at the affordability of the prospect rather than the varying demands of the individual and their family. But data analysis can offer almost perfect solutions and it is possible today.

When we examine the public communications of various companies today, we find a common theme: providing adequate protection at the lowest cost. Some companies’ websites today offer customers the opportunity to choose the best protection for themselves. The big question today is not how to create a need and fill it; but how to recognize the need and fill it.

Provide hassle-free service

Insuretech has helped provide hassle-free service to existing customers and insurers subscribe to the idea that good service will lead to strong customer retention and even acquisition. The biggest challenge for insurers all these years has been insurance awareness and now that challenge no longer exists.

This is a golden opportunity for insurers to shed their old image and become a solution provider. Insurers need to retrain their workforce, rethink their marketing strategies and abandon pre-pandemic work models to embrace last-mile digitization to match the needs and aspirations of potential customers seeking the best solutions, without hassle or cache. costs.

Insurers must leverage lessons learned from the pandemic around new ways to engage consumers and connect employees to drive results and adopt innovative strategies to transform their businesses into financial security providers instead of providers. to be mere sellers of insurance policies.

New goals

* Abandon pre-pandemic work models to embrace last-mile digitization

* Collaboration between insurers to design essential and cost-effective customer solutions

* Customers want hassle-free insurance solutions with no hidden costs

The author is former General Manager and CEO of Star Union Dai-ichi Life