FinTech Collective Member David Shillingford brought this post to our attention. A great w/e read outlining how consumers accustomed to easy shopping on Amazon or eBay are increasingly frustrated at the digital ineptitude of large insurance companies.
Consumers fumed over the rollout of Healthcare.gov and the state health insurance exchanges last fall. First, they couldn’t get online. Then, once they did, the information was hard to understand. For consumers accustomed to easy shopping on Amazon or eBay, choosing a health insurance plan online was an exercise in frustration. That frustration highlights how important it is for insurers – not only health insurers, but also property and casualty and, increasingly, life insurers – to master digital. While retailers and cable companies moved their businesses online years ago, many insurers, struggling with legacy technology and outmoded organizational structures, are playing catch up. And yet a shift to digital would improve performance across three areas: 1. The ability to mine the digital data consumers leave behind on the internet, social media, driving apps and even health-monitoring wearables could help carriers to better target customers, price and underwrite policies more accurately, and manage claims more effectively. 2. The simple digitization of existing insurance processes (allowing quotes to go straight through processing, for example, and rapid product configuration) could yield strong improvement to operating profit margins. 3. Increased digital marketing could improve opportunity to connect with existing customers, allowing firms to better upsell, cross sell and retain valuable customers.