As insurance companies take a deep plunge into digital transformation to beat business disruptions, operators in the industry have been urged to consummate the efforts with value-adding products.
The insurance industry is going through profound change and this disruption is not just digital because no matter what technological advancement we adopt, if it does not translate to value for the customer, all the capital outlay will have been in vain, said Muftau Oyegunle, president, Chartered Insurance Institute of Nigeria (CIIN).
Oyegunle, who gave the advice during the official opening of the 2020 insurance professionals’ forum of the CIIN held in Abeokuta, Ogun State, said the task before us is to create an entirely new set of products that inspire customer demand, anticipate and address customers’ needs and wants.
“These products must be simple and flexible enough for customers to evaluate and purchase through any channel. There is a need to offer a holistic value proposition, one centred on the aspirations that really matter to consumers, including well-being, safety and reaching personal goals.”
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According to him, consumers have experienced highly personalised, self-directed shopping experience followed by instant fulfilment and they are looking for this same service from all service providers including insurers.
He said, “regulation and a conservative business approach have caused insurers to adjust slowly, but outside forces are now bringing to light the full effects of this transformation-in-waiting for the insurance industry.”
“Disrupters in other climes have found new ways to evaluate risk, with tools like big data, drones and telematics. They have expanded offerings with micro-insurance, and they are finding better ways to engage with customers in an online world. They are also experimenting with blockchain and the possibilities it presents for the industry. The shifts that are taking place affect every aspect of the industry value chain, which means the insurance marketplace of the future will soon look nothing like that of the past.”
