Market Trends Push Insurance Industry into Digital Age: Majesco Research
Staff Writer | January 19, 2017
Majesco published a new thought leadership report, Insurance in the Digital Age: Transforming from Outside-In. The report highlights how the changes occurring outside and within the insurance industry are revolutionary, are rapidly shifting customer expectations and require a holistic, strategic response by insurers.
“Two things make this transformation a revolution. First, it is customer driven. Second, it is influenced from outside insurance,” says Terry Buechner, vice president, digital consulting at Majesco. “Getting an ‘outside-in’ view from customers regarding the new capabilities they demand is crucial to success. This requires a digital strategy and customer journey mapping to underpin this transformation.”
To successfully compete and meet rapidly changing customer expectations, insurers must have a digital vision and a full view of the customer journey. Defining and developing the customer’s entire journey—not just parts of it—is critical to customer satisfaction. This is reflected in Majesco’s research, The Rise of the New Insurance Customer: Are You Ready?, that shows NPS scores from customers who rated all three broad components of their journey across the insurance value chain as “easy” (researching, buying, servicing) with 50 to 76-point higher NPS scores compared to customers who rate even one part of the experience as “not easy. Taking advantage of specific opportunities in the value chain is valuable as long as general principles for the user experience are followed and the projects are the building blocks of an overall digital strategy.
“A burning platform like this, while motivating for some, can drive others to do nothing out of fear. The change underway is so overwhelming that many do not know where to begin. Some revert to what is comfortable, being a fast follower,” says Denise Garth, senior vice president of strategic marketing, industry relations and innovation at Majesco. “Others are reacting—implementing yesterday’s solutions (like portals) in an attempt to keep up. Some are experimenting with advanced technologies (like drones) without an overarching strategy. This tactical, piecemeal approach may slow the rate at which that expectation gap widens, but it will not stop it, much less reverse it.”
The report notes that it is only going to get tougher. The pace of change is accelerating and the gap between customer expectations and insurer capabilities is widening, becoming harder to bridge. Insurers must take immediate action, or risk being left behind.
A holistic digital vision is required, with people, processes and technology aligned accordingly. Only within that strategic framework will digital success be achieved. Digital is an opportunity for insurers to invest in areas that will differentiate them in a rapidly changing market.
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