Many industries, including the insurance sector, are seeing how disruptive technology is changing the way they do business – often forcing companies to re-think their strategies, writes JAQUELINE VAN EEDEN, Insurance Head at Wipro South Africa.
Disruption, once a word used to describe bad behaviour, has now been turned into a revolutionary means of changing the way business is conducted by technology. Insurance is not exempt from this disruption. We are seeing a very clear shift away from traditional means of insurance towards the newer, more evolved methods necessary for maintaining pace in a fast changing, always-on and connected world.
There are typically four main aspects of insurance: product design, pricing and underwriting, distribution and admin, and claims management. This model has been the same for decades and, despite of the increase in product complexity, the insurance business is essentially relying on policy premium income and asset management to function.
However, the rise of disruptive technologies and changed customer mind set is changing this model, and insurance companies are forced to change from product-centric model to customer-centric approach.
Insurers are moving towards customised, usage-based, real-time coverage models and moving away from risk-based underwriting approach to risk management approach. From the beginning, insurance companies have captured lot of data and advancements in big data and analytics, helping insurers in right risk selection, enabling more accuracy than ever before. Legacy interaction methods and distribution channels using call centres and one-on-one visits are being replaced, and anywhere anytime response to customers is taking top priority. Virtual technology is providing easier and instantaneous ways for clients and insurers to obtain and update information, even enabling seamless and accurate billing via mobile applications.
Emerging digital trends in insurance
There are several trends currently disrupting the insurance industry across the globe, many of which are either technology related or technology driven, which are enabling insurance companies to remain relevant and competitive. African insurance companies are following suit and embracing many of these global trends in the face of a challenging and complex market environment.
Some of the key trends that have been identified are an increased use of Internet of Things (IoT) by insurance companies, the use of Big Data to improve claims processing, an increasing demand on cyber insurance, the emergence of Peer-to-Peer insurance, and a growing focus on mobile applications for interaction between insurers and their customers.
Today’s customer uses the Internet to source quotes and research insurance companies to check for the best deals, yet research shows that most insurance purchases are still happening telephonically or through in-person interaction. Insurers are coming around to the fact that customers prefer online interaction, and are realising the need to adapt their systems accordingly. We will be seeing the progressive simplification of legacy systems to remove the barriers that hinder them from offering a consistent and seamless customer experience.
As the trend for connected and smart devices continues to grow, IoT is fast becoming a transformational driver in insurance industry. Several auto insurers have implemented new models based on vehicle telematics. The possible applications of connected devices across the industry are extensive and have the potential to revolutionize claims processing, product pricing and fraud detection. Auto insurance industry still worried about the future of insurance connected cars and driverless cars as the manufacturing advancements are going to reduce the risk and there by premiums for insurers. Industry predicts that Auto insurance premiums will go down significantly in the next 10 years due to customer behaviour changes and manufacturing advancements in the industry.
Virtual adoption across the insurance industry has also been vast, and many insurers are actively using or implementing virtual computing for operational flexibility, function standardisation, cost savings, scalability and business agility. Small to mid-market insurers have been seen as early adopters of virtual computing services, which is enabling the ability to deliver faster claims, policy and billing services.
Insurers are facing an all-time low retention rate, backed by growing customer demand and rising concerns about cyber-crime. By not capturing and extracting data accurately, insurers are not able to assess their business positioning and the associated business risks fully, including security breaches. Insurers are being forced to make operational changes which will enable them to make better use of their data, for the purpose of retaining business and staying ahead.
Traditionally insurance is sold than bought. With advancement in technology customers have multiple options and they are demanding changes in the behaviour of insurers to have multiple touch points now compared to the past. Insurers are migrating and upgrading their legacy systems, by automating and digitising core systems. Insurers are seeing the benefits of improved efficiency and customer interaction at multiple touch points. Legacy system transformation has been slow in Africa due to perceived high costs and lengthy implementation timelines. However, many are quickly realising that the longer they wait, the more customers they risk losing, adding to their lag behind competitors.
Insurance companies are embracing these trends and looking at more innovative ways they can attract and maintain customer retention. They are remaining up to date and very interactive with what is happening, even exploring radical game changing technology such as the blockchain.
Disruptive technology is creating new insurance services
With the advent of technologies like IoT, we are seeing an emergence of new services. Connected home technologies are enabling people to stay in touch with things like their home security systems, which is reducing risk for insurers who offer home insurance. Wearable technology is enabling health insurers to keep real-time tabs on the health and wellbeing of their customers, again mitigating risk.
We are seeing the biggest impact in the use of Big Data, though. Insurers are discovering the multiple benefits that the wealth of information available from sources such as social media is delivering. Using this information, they are able to tailor their products based on customer preferences and even offer customised rewards programs, increasing sales and customer retention significantly. It is also enabling easier and more streamlined claims processing, as information is recorded, and centrally stored and accessed.
Of course, the mobile trend, particularly in Africa, is making possible the use of apps, not only to smooth insurer and customer interaction, but also to track things like customer fitness, health and even wealth status. Applications are opening up a world of possibility for insurers everywhere.
Insurance in Africa vs the World
In South Africa, lot of importance is placed on things like life insurance, private medical aid car insurance. The rest of Africa, however, sees insurance as less necessary. This means that insurers who operate in Africa need to be more agile, identifying ways in which they can appeal to the African market and delivering them with speed.
Quick, Easy, Instant, Flexible Insurance is very attractive to the African market. An example of such an initiative is currently being investigated by a South African Insurer who is moving into the Nigerian market. They identified a need for taxi drivers to have medical and insurance cover specifically for while they are in transit. Taxi drivers will be able to purchase insurance making use of USSID or a smart phone application enabling cover only for the time that they are travelling from collection point to destination – an attractive and cost effective proposition for the transport business
This is just one of the many ways in which insurance is changing and being impacted by technology. Insurers, typically entrenched in tradition thanks to its association with stability and reliability, do need to realise that the market has changed. It’s time to embrace technology and disrupt the way insurance works for longevity.
Huawei goes ultra-premium
Porsche Design and Huawei have launched the Porsche Design Huawei Mate RS in South Africa exclusive to MTN and retailing for R 26 459.
The Porsche Design Huawei Mate RS boasts features like the world’s first dual fingerprint design, including an in-screen fingerprint sensor, the world’s first Artificial Intelligence (AI) processor and Leica triple camera with 40MP image capture.
“After the overwhelming success of the Porsche Design Huawei Mate 10 Pro in South Africa, we now bring you our latest offering, a perfect blend of innovation in a smartphone and luxury design,” said Likun Zhao, Vice President of Huawei Consumer Business Group Southern Africa. “From three-point security feature including facial recognition, rear fingerprint scanner and the new innovative in-screen fingerprint to the Leica triple camera system. it culminates in an unprecedented experience for our customers.”
The device incorporates Porsche Design’s signature design language and Huawei’s breakthrough technology. The phone has a 6” 2K curved OLED screen and symmetrical look, minimalist feel and 8-edged 3D curved glass body.
High performance is symbolised by the naming of the smartphone: the term “RS” in the world of Porsche motorsport stands for outstanding racing performance.
Huawei provided the following information on The Porsche Design Huawei Mate RS benefits and features :
· The world’s first dual fingerprint scanner for enhanced convenience, allowing users to wake and unlock the device simply, thanks to an in-screen fingerprint sensor. Hover to wake the device, touch to unlock it
· The winning combination of Leica triple camera with 40MP RGB sensor technology and exceptional photography powered by Master AI. This combination puts effortless, eye-catching photography at the fingertips of those looking to immortalise their favourite moments. Combined with 5 x hybrid zoom, and the world’s first AI image stabilisation on a smartphone camera ensures photography lovers can capture the best shots with exceptional clarity in almost any situation
· The Porsche Design Huawei Mate RS is the first Huawei handset to allow quick wireless charging, making it even easier to keep the phone topped up and ready to go and, thanks to its long lasting battery, users will easily be powered through the busiest of days
· An ‘intelligent’ smartphone, the powerful AI processor automatically tailors the performance of the phone according to how it is used – constantly learning, understanding and anticipating needs, it is the perfect personal assistant for the pocket
· 256GB of internal storage means those constantly on the go and constantly on their phone can be worry free
· Dual SLS (super linear system) speakers with DOLBY ATMOS enable users to have a superior experience, with the best immersive surround sound and entertainment on the go
· Splash, water and dust resistant, which means there is no need to worry about damaging the device in the rain or accidentally dropping it in water
Jan Becker, CEO Porsche Design Group, said: “Both Porsche Design and Huawei seek to imagine and develop products that stand for precision and perfection, intelligent functionality and highly sophisticated design. Our aim was to create an outstanding device that goes one step further. We believe we have reached this goal by taking our partnership to the next level.”
Porsche Design and Huawei have worked in tandem to develop a smartphone that fuses together the two brands’ DNA, wealth of experience in design and technology, industry-leading expertise and exceptional performance. Through the use of colour in the device’s body, software themes and accessories, the new handset is accentuated with Porsche Design’s distinguished aesthetic and purist, minimalist feel.
The Porsche Design Huawei Mate RS will be available to purchase exclusively from MTN at R 26 459.
Cross-channel chat launched
Clickatell has launched a cross-channel live chat service, Touch Go, that transforms omni-channel customer care.
It enables live chat across a company’s website as well as social platforms (Twitter and Facebook) and mobile apps, bringing customer care and engagement into a single business platform.
“Today’s consumers expect to engage with your brand on the digital channel of their choosing,” says Deon van Heerden, Clickatell Engage CEO and Group CFO. “They want to message your business and instantly have queries resolved, find the information and services they are looking for, without the need for a voice call. Clickatell’s Touch Go makes that happen with the right level of capabilities for businesses of all sizes.”
Businesses can start using Touch Go immediately, with a free Starter option. Touch Go requires no credit card for sign-up and is fully featured with a simple setup process. It offers customisable branding, a unified chat desk business application as well as reports and analytics.
As the business scales up its digital customer care, it can opt-in for the Touch Enterprise offering. Touch Enterprise is designed for scaling up customer care efforts through advanced capabilities including AI driven virtual agents, sentiment analysis, automated workflows, enterprise integrations and in-channel mini-applications.
“Customer care has become a defining factor for sustained business success ” says Nirmal Nair, Clickatell Engage EVP Product & Marketing. “In an ever-increasing mobile native world, customers often choose to interact digitally, but they also expect to be able to reach a human immediately, should they need. Monitoring multiple channels and providing immediate action becomes challenging with siloed deployments. Touch’s unified solution allows businesses of all sizes to provide the customer delight in a simple modular approach.”