The Insurance Customer of 2020
Tim Attia | February 09, 2015
There has been a good deal of buzz in the industry about customer centricity, the ideal customer experience, the role of Big Data and analytics, the Internet of Things, and every other cool new gadget from Smart-“you name it” to telematics, but what might that insurance customer experience be like when all of these innovation promises turn into reality?
It’s 2020 and John, the baker, was working on the mixer that had gone faulty the night before. He had to make the cinnamon rolls that morning, so the equipment had better work soon. That it was 3 in the morning was not lost on him, but he had his morning jolt, a cup of hot coffee.
As he took a sip, he thought about a small fire he’d had a couple of weeks ago. He realized he likely needed an upgrade in his insurance based on what his insurer had told him about some of his equipment not being covered. He didn’t fully understand why his coverage was insufficient and didn’t have time to deal with it. Besides, hadn’t the sensors, the cameras, and other security equipment he’d installed enabled his insurer to know what was happening at all times?
On the advice of the insurer he’d even installed sensors in his car and house since the discounts for doing so were good and he liked feeling secure. But he was worried enough about that fire that even though focused on fixing the mixer he decided to make a quick call about his coverage. After all, he’d worked too hard to let it all go up in smoke.
John tapped his ear piece and spoke the name of his insurer, the phone dialed and a representative picked up. “Hi, John, Maggie speaking. You’re up early. How goes it with the mixer?” John knew why she asked. He’d given permission to the company to monitor his bakery with cameras and all of his equipment had sensors mounted on them. They could tell the mixer was malfunctioning. As soon as John called, information from his operation and images from the shop appeared on Maggie’s screen.
John responded, “Maggie, I’m concerned about the insurance I have on my shop. While my fire claim was paid quickly and it was a small loss, I got a call from Ralph at your company saying I might not be fully covered if something worse happened. Ralph mentioned something about the sensors I installed in the shop and on my equipment matching up with something in your system, and it turns out some of my equipment is not covered, at least according to Ralph, and the information he gleaned from some sort of database.”
“I don’t remember providing the information, but it is accurate. I did some research and noticed that in getting some comparison quotes, your pricing seemed high. I need the additional coverage, but you need to do something about the cost. Thanks, Maggie, gotta get back to the mixer. Let me know what you come up with.”
John still had some coverage with his long time agent Joe, but lately he’d gone on the Internet to see what was available and do comparisons. While he didn’t mind paying for the proper coverage, he didn’t want to get ripped off. Joe had done a good job over the years, but based on research John had done during a few spare minutes, he didn’t think he was getting the best deal. Several weeks ago John spoke with a friend and concluded his costs were a bit out of line since they had similar lifestyles and businesses. Hence the call; he thought he might as well talk directly to his insurer.
Within about two minutes after hanging up with John, Maggie had done her own research. She could see her company’s costs were high and John did not have the coverage he needed.
She did a quick comparison of her products and coverages and concluded her company couldn’t compete with what she saw was available in the market.
It had been drilled into her that keeping the customer was the highest priority. Back in 2014 Maggie’s company had committed to be “customer centric” and to owning the customer relationship. The placard on Maggie’s desk proclaiming, “Products come and go, but customers are the Holy Grail,” served as a constant reminder.
Yet, she now knew that her BOP policy didn’t properly cover John’s needs. Luckily, the company had installed a sophisticated system to better understand its products in comparison with other insurers’ products. John had several policies with them and she didn’t want to risk losing all his business. So she sent a new proposal to John’s phone with the proper coverage from another insurer with whom her company had partnered.
John heard a ping, reviewed what she sent, liked what he saw and checked the “I accept” box. He took another sip of his still hot coffee and went back to worrying about his mixer. Had to get that thing fixed before 4 a.m. to start that day’s batch of cinnamon rolls. Back in the call center Maggie clicked a few keys, made sure all of John’s sensors were online, and took the next call.
2020? Maybe sooner.
About the Author
Tim Attia is executive vice president, sales and marketing, for Bolt Inc. He can be reached at firstname.lastname@example.org
- Enterprise Architecture in an Agile World
- Top 10 Tips for Securing Your Mobile Devices and Sensitive Client Data
- Industry Insight: 4 Global Insurance Trends in Digital, Data, Content Services and Security
- Diving Deeper into Prioritizing Your Strategic Digital investments
- Why Content Rules
- How Mass Personalization Will Open the Small Business Benefits Market
- At Year End 2017, Will Your Organization Be Protected from Cyber Risks?
- Do Insurance Bots Dream of Mitigating Risk?
- Conditioned to Respond
- Managing & Mobilizing Insurance Data in a Connected World
- Race to the Finish Line
- New Tools, New Opportunities in Claims
- ITA LIVE: Reaching Insurance Industry Crossroads
- Advice to Insurance IT Leaders: Keep Your Eye on the Ball
- New Date, Venue for ITA LIVE 2017
- Guidewire Makes Major Push to Small and Midtier Market by Acquiring ISCS
- Insurance Disruption is Happening Right Now
- Insurity Adds Strategic Investment Partner, General Atlantic
- Beyond Transformation: The Convergence of Finance, Risk, and Actuarial Functions
- The Rapid Evolution of Consumer Protection Regulation
- Talent Hunt: Finding, Attracting, Retaining Top People
- Insurers Flexing Their Distribution Models
- Technology Driving Disruption in Insurance
- Fear of ‘Next Bubble’ Challenges Life, Annuity Carriers
- Technology Allows Commercial Lines Insurers to Stand Out
- Single Sign-on Viewed as Biggest Tech Challenge for Agencies
- ISCS Observes 20th Anniversary; Scurto Predicts Major Changes Ahead
- Policyholders and Their First Impressions
- Progressive Making Progress on the UBI Front
- High and Dry: Insurers Search for Disaster Recovery Plans
- Insurers Sign The (Un)Dotted Line
- Reflections of a Retired Insurance CIO
- Mobile Device Management Just One Answer to BYOD Issue
- Lessons from GEICO and Progressive on Winning the Critical Buying Stage
- You Are a Target for a Cyber Attack
- Web-based Systems are the Next Evolution in Claims Technology
- Gaining a “Wow” Experience from Web Users
- Time to Shift from Business/IT Alignment to Business/IT Alliance
- Healthcare Insurers Changing to Consumer Model
- Organization is the Key for Selecting Software Vendors
- Analysts Expound on the Needs of the Mid-tier Insurance Market
- Finding the Cure for Obamacare’s Website
- New Software Solutions Benefit Insurers on the Inside and Outside
- Products, Market Impede Investment in Systems for Life Insurers
- Combatting Cyber Threats: Predict, Prevent, Persist
- The Future of Telematics Heads Beyond Insurance
- The Shame in Cyber Security Lapses
- Building Policy Administration Systems for the Future
- Insurers Look Into The Eyes of Their Policyholders
- It’s a New Dawn for the ITA
INSURANCE IT NEWS
- Captricity AI Surpasses Human Ability to Read
- Maple Tech Announces Enhanced Integration Functionality Available in Latest Version of Aspire
- ORIGAMI RISK RECEIVES GROWTH INVESTMENT FROM SPECTRUM EQUITY
- Raffles Health Insurance (Singapore) Selects Majesco’s Health Core Platform
- EIS Group Announces Reseller Agreement with Comtec
- Kookmin Best Insurance Company Selects Majesco CloudInsurer
- Glatfelter Insurance Group Selects OnBase by Hyland to Improve Information Management
- Bold Penguin Announces Commercial Insurance Marketplace Expansion
The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.
ITA is pleased to present the 2014 Webinar Series. We have many topics for you to choose from and attendance is open to all ITA members. The webinar topics are current and exciting — ranging from predictive analytics to telematics and will focus on the direction insurance carriers need to follow for the future. All webinars are presented by insurance IT professionals along with some of the leading analysts and consultants in the field. There is no cost to attend an ITA webinar. For more information and to register for the webinar, click the “title” of the webinar below.
BLOGS AND COLUMNS
It has become a common refrain over the past few years to view the practice of enterprise architecture (EA) as something that time has passed by, much... READ MORE
One important trend in society over the past decade is our increasing ability to create and consume a seemingly unlimited amount of digital content... READ MORE
You have surely heard it said that small businesses are the growth engine for America. Today, the phrase has a special ring to it for benefits... READ MORE
With stagnant growth and lingering low interest rates, the life insurance industry faces a challenging future... READ MORE
Finding insurance carriers willing to write commercial lines risks has always been a challenge for producers... READ MORE
As Guidewire Software prepares for the start of Connections, its 11th annual user conference that begins on Nov. 2, Brian Desmond, chief marketing... READ MORE
Fraud detection has always been and will continue to be a critical component of claims management. Learning the lessons from current claims Straight... READ MORE
- Vendor Views