The race for insurers to differentiate in the industry is on. As insurtechs disrupt the market and customers demand seamless, individualized experiences, insurers need to change the way they serve their clients.
Insurers are responding in different ways to the challenge, but across the board, customization is key. Some are entering the market with new products, some are differentiating based on the level of data use, while others are focusing on refining the overall customer experience. A great example of how the market is changing is Fennia, a Nordic insurer that has joined with Accenture and Salesforce to drive the first cloud transformation in the insurance industry in the region. In this case, the company has turned the focus of their digital transformation on the customer. By reimagining their business, they’re setting themselves a competitive differentiator. Let’s take a look at how their process sets a precedent for the industry.
The insurance industry needs a new approach
Traditionally, insurers have served clients with a known suite of products, created over years of customer data analysis and insight. However, customer needs are changing rapidly. Customers want insurance products that adapt to their changing needs, as well as the ability to add or change a policy or make a claim digitally. While many insurers have access to the data that makes this possible, many don’t have the digital infrastructure to adapt quickly and flexibly. A similar situation has fuelled Fennia’s transformation. While Fennia’s customer service and Net Promoter Score (NPS) is good, they want to drive customization for their customers further.
“In our Future Fennia program spanning across several years, we strive to achieve the best customer experience in the industry. We want our customers to be able to shape their own lives and experiment without concerns. We have already polished our brand and developed our customer experience. We are now taking a huge leap in developing our digital services. In order to provide the best customer experience in the industry in line with our vision, we first need to assess our entire business and the systems that support it,” says Antti Kuljukka, Fennia’s President and CEO.
The intent to serve the customer must be reflected at a broad scale. This begins with investing in a digital platform that can reflect a reimagined insurance experience at every touchpoint. As Fennia’s transformation illustrates, the new platform is being designed to not only improve the customer experience and increase customer satisfaction but to foster business agility, allowing the business to quickly respond to changing market and customer demands.
The importance of technology
Following the rapid change of the past few years, most insurers will be considering a digital transformation. This supports refined customer focus and business agility. However, not all technology platforms are equal. The insurers that will emerge a cut above the rest will be those that invest in the technology that is the best fit for them. In the case of Fennia this was Salesforce, known for its customer relationship management systems. With its experience in implementing the platform, Accenture was able to collaborate with Fennia to establish an entirely new operating model and reshape the customer experience with improved digital capabilities, so the customer is first throughout the entire insurance process. This will help extend to sales, claims and policy-management processes
By building a new, digitally supported customer experience, Fennia will be set apart through an innovative and future-ready platform to meet and adapt to the needs of its customers. The new system will be built with the future in mind: the end result will be a system that can be developed easily and flexibly. Thanks to cloud technology, the system is constantly up-to-date and can be used regardless of time and place.
“In practice, we are building a new insurance business alongside the current one, instead of merely patching up what we already have. In this way, we will be able to build the future with our clients uppermost on our mind,” Patrik Serén, Fennia’s Chief Development Officer, explains.
Boldly reimagining is an opportunity for all
Insurers must go beyond data and understand how customers think if they are to provide at least an average experience. For an outstanding experience, they should know how to translate that data into relevant offerings.
Cloud is an important tool for insurers – both new and established – as it can be scaled quickly and uses reliable technology as the foundation for transformation. However, as Accenture’s recent report Reimagining Insurance: The New Cloud Imperative shows, initiating or accelerating a Cloud Transition isn’t always easy. Fennia’s bold and visionary solution is an example of what it takes to execute a strategic, relevant cloud transformation: careful planning, the bravery to facilitate an overall transformation of business and technology, alignment with leadership and a customer-centered approach.
Get the latest insurance industry insights, news, and research delivered straight to your inbox.