The real long term opportunity for insurers is to transform the very nature of their customer relationships and the key to achieving this transformation is data.
Highly relevant and valuable data is generated by consumers’ mobile phones, wearables (e.g. Fitbit) and a whole host of new connected devices being introduced in the ‘Internet of Things’ market (connected homes, connected cars, etc…)
This represents a great opportunity if you can convince your customers to give you access to their private data in exchange for valuable new advisory services such as helping them identify, assess and mitigate health, property and lifestyle risks as well as gain protection tailored to their individual needs.
But to do so your customers must feel cared for individually and with true empathy and they have to trust that you will continue to keep things fresh by evolving your services. Customers should also be incentivised and trust that when they change their behaviour and improve their risk profile they will benefit from cheaper insurance premiums.
If you can’t convince them, there are suitors lining up around the block who will sweep them off their feet. That’s a tough challenge as it’s hard to change arm-length relationships into closer relationships. It’s also hard to act nimbly when, at this age, you’re anything but.