To help insurers maintain a competitive advantage, the following five steps will help organizations seeking to thrive in the years and decades to come.
1. Define your purpose, clarify your value proposition and differentiate your brand
Defining your company’s purpose and ensuring that it is driven by a higher value other than the bottom line is critical to differentiating your brand and will enhance your value proposition with customers and employees alike.
While providing protection is the ultimate product and purpose of all insurers, in a competitive market small differences matter. Whether your purpose centers on sustainability or charitable causes, it must differ from your competition and be communicated effectively.
To clarify your value proposition, you must first determine what customer problems you can solve and what their most pressing needs are – e.g. comprehensive risk management or functional benefits such as low price and convenience.
Then, you need to ensure that your purpose will be felt – and valued – at that time of their greatest need when they are most likely to be contacting their insurer.
Importantly, you must decide whether you can proactively reach out to customers on a regular basis, rather than only during times of pre-or-post distress. Each of these customer touchpoints should give them an experience that solidifies their understanding of your brand and its purpose.
2. Identify and create the offerings
An insurer’s purpose and differentiation, as well as its customer-first approach, must steer the design of its products and services. As with other industries, the insurance sector must rethink what it offers its customers in today’s digital age.
Insurers must view the entire customer experience as the ultimate product. They can do this by digging deeper into their data and using market intelligence to understand what’s next for their customers.
By thinking beyond traditional insurance products and services, insurers can get ahead of upcoming risk exposures and emerging consumer needs. They can apply this practically by testing new offerings to showcase their innovation to existing customers and traditional distribution partners.
By building products and services around the moments that matter in their customers’ lives, insurers can strengthen customer trust and value perception. The process of enhancing their value offering must be measured in week or months rather than years.