In a more volatile, uncertain, complex and ambiguous world than ever before, insurance is trying to be robust and adaptable. And they don’t do that badly. Decryption and perspectives.
Geopolitical tensions, climate change, the return of inflation, the digital acceleration … The period is not at rest for insurance. However, the industry continues to transform, especially with the news that customers expect.
Of these, the quality of the offer and the customer experience is not the least. Anterior to the health crisis, the question that takes place in a post-pandemic context in a new dimension. Car the crisis has indeed transformed expectations in terms of customer relations and distribution. In any case, this is what a recent Deloitte study points out, according to which the website or customer space has become the second favorite channel for French people to carry out their operations, behind the phone and in front of agencies. As with banks, the decline in agency attendance is thus constant, if not structural. In 2021, 19% of policyholders have gone to the agency, ten points less than in 2019. And the consulting firm estimates that by 2025, that figure will fall to 10%.
Convenience insurance and seamless experience
Beyond agencies, the frequency of contact as a whole is declining. An illustrative finding the “commoditization” of insurance with the French, ie a standard product that is purchased indiscriminately from one or the other, without investing excessively other than at the time of subscription or termination. Thus, one third of the French have not carried out any operations with their insurer in the last 24 months. A phenomenon accentuated by the generalization of the consistent offers of the preacher ad hoc insurance when purchasing the product itself, in person or in partnership with an insurer.
Another phenomenon of opera, often standards of experience in forte hausserequiring industry players to move from a product intrare vision to an approach customer focused. Because in modern life we are accustomed to accessing knowledge in three Google applications or skimmer in flexibility between the jackets of the series on Netflix, new requirements every online experience, which is also instantaneous, fluid and seamless than those procured by the tech giants – even when it comes to filing a water damage statement. 70% of French people say they are ready to use the only digital channel for small claims (less than 1500 euros).
Between well-felt digitization, empathy and listening
That is to say that the Car Care will eventually replace the human relationship in the industry? The answer is much more complex. Car if the time is distinguished by exponential digitization of our daily lives, it is also characterized by its anxious character, not to mention complete VUCA (Volatile, Unsure, Complex, Ambiguous). A context in which the human factor can make a difference. Recall that the phone remains the first reflex to contact your insurer. In addition, at a time when the issue of revitalizing territories is becoming more the network of agencies can be an opportunity to test new models. Allianz France is thus testing a concept of traveling agencies. The vehicle, arranged on 15 m², to receive customers for advice, project, subscription, allow the service of low-density areas and meeting with customers and market prospects, fairs, etc.
So it’s at the art of the subtle balance that insurers will have to strive for, in an omnichannel vision combining well-felt digitization and capacity for empathy and listening. More to digital transformation, touch them too back office of insurers: dematerialization, automation of tasks thanks to RPA (Robotic Process Automation), among other uses of artificial intelligence … trial to withstand the pressure of new entrants. Because neo-insurers have been rolling out industry cards for several years now. The native intent of the technologies in their model, capitalizes on the customer experience before choosing, often confronts them in their communication.
Pay more for non-paragraph insurance
A “simplification shock” that consumers obviously call their wishes: In a study commissioned by the Insurance Factory, 68% of respondents say “pay more for non-paragraph insurance” – the share even reaches 80% for Generation Y. Often well-funded, neo-insurers can start from their target markets, even paying a high customer acquisition cost (CAC). An aggressive growth strategy that will, however, convince the markets: the Argus of Insurance noted the underperformance of Assurtech listed on the Nasdaq in 2021, such as Lemonade (-63%), Clover Health (-65%) or Root Insurance (-85%), where the S&P 500 gained 21%.
And the Big Tech in all this? If in the past the Cassandres often predicted the disruption of the market by the tech giants, the latter did not finally invest than very precise segmentsespecially in health – for example in its preventive dimension, based on data from the self quantified – and often in partnership with traditional actors. Apple and entered into a partnership in 2019 with US insurer Aetna, based on data collected from the Apple Watch.
The insurance remains, however a market with binding regulations, require expert skills, with a still high customer retention, for profitability ultimately below the ratios that these companies are familiar with. Structural barriers to entry rather high, even for a giant: Amazon has ended Haven, a health insurance project launched with JP Morgan and Berkshire in 2018. Rather than face-to-face, it would seem that these companies choose the way of collaboration, as technology providers such as the cloud (Azure Microsoft, AWS Amazon) or insurance distributors, for example, backed by a consumer product. Another type of partnership, those that can unite from platforms to strong communities of interest with insurers : let’s mention BlaBlaCar which launches car insurance connected with L’olivier, after working with Axa.
Recruitment and free-lance tensions
In order to implement these transformations, good talent management is key. And as in many industries, insurance is facing recruitment tensions. According to the 2022 Insurance Industry Outlook study, 43% of professionals surveyed estimate their difficulties, especially in their search. profile technologiques: developers, AI or cybersecurity experts. Known for its rather rigid systems, the industry must also take into account the profound changes that are taking place in society: o aspiration for more flexible organizations, more diverse profiles, close attention to corporate culture and corporate CSR commitments – all the more crucial if we consider the investment power, as well as the social role of insurance.
Another profession that constitutes insurance, the profession of broker is, according to professionals, more alive than ever. Distribution platform of the distribution, “free-launch” of the trade distribute When the relationship with the customer can make all the difference, these intermediaries can pull their epingle du jeu. To do this, some do not hesitate to employer social media, LinkedIn or Facebook, but also more surprisingly TikTok, the darling platform of the youngest, like Sana.assurances and its 20,000 followers.
However, insurance will not do without acute attention to risks, especially climate. According to France Assureurs, the costs of claims related to climate events have been rising for 40 years. Et the numbers show a clear acceleration: with an average annual cost of about one billion euros in the 1980s, compensation has reached four billion euros in recent years, all hazards combined (drought, flood, storm, etc.). And in its study “Impact of climate change on insurance in 2050” published in October 2021, the trade union estimates that the cost of claims related to natural events could reach 143 billion euros accumulated between 2020 and 2050, or twice the amount recorded over the period 1989-2019. Climate change would thus account for more than a third of the increase in climate accidents within the next 30 years.