Is this a case of "The Grass is always Greener" applied to services?
Might be best to look at the services already provided and improving them from OK to delivering world class experience to customers. Faster settlement, Amazon class UX and in more complex claims tackling inefficient drainage, escape of water and subsidence problems.
Communications and Orchestration as an integral part of a Digital Claims Hub is a must. Probably 35% of the following services costs are waste time and materials: -
- Spec and Quote
- Repair, rebuild, replace
- Inspect again and authorise payment
Orchestrating the supply chain, digitising supply chain management and keeping customers informed will improve service and significantly reduce cost.
And there is a basic service insurers could offer customers but rarely do. When a claimant is told that their policy does not cover a particular event why don't they offer a service partner at reasonable price and upgrade the policy? Any digital claims platform must offer that capability.
That still leaves open the opportunity for new services outside insurers core products/services. But as the FT article highlights the competition there will be fierce.
So still requires vision and the capability to innovative and fast moving. Not things insurers have excelled in the past. Suggest you look at these tips from Marteen Ectors Chief Digital Officer at Legal & General before you start on these new ventures .
You need to be able to launch new products fast, iterate and constantly improve. Something customers of 360Globalnet have enjoyed to keep ahead of customer expectations.
Higher expectations are not the only problem the insurers are facing. In many parts of the world, their core markets are mature, competitive and barely growing at all. And since the financial crisis they have had to grapple with low interest rates and new capital rules, both of which have dented their traditional business models. Services are increasingly seen as the answer to all of these problems. If done right, goes the theory, the costs of providing them will generate happier customers, higher revenues and less volatile profits for investors.