The premises is always the same: a global switch to new scenarios in culture, personal behaviors, sociality, retail experiences, work experiences.
Digital is now a constant presence that offers new opportunities and creates new expectations in our daily life. The pandemic has been an accelerator, pushing and allowing us to discover new habits and journeys.
INSURANCES HAVE TO TAKE THE CHANCE OF MOVING FORWARD, COMPETING DIFFERENTLY AND ASSISTING NEW PEOPLE NEEDS AND EXPECTATIONS
Like many other industries, insurances must take this train of change, taking the opportunity to shake the common proposition, and open to new possibilities to reach interesting goals. Here some of them:
–CHANGE THE SECTOR’S PERCEPTION
Set a distinctive and renewed proposition, especially if there is the goal of adding new services beyond insurance core products
–RE-THINK THE OFFERING
Thanks to digital migration, companies can focus on people’s new expectations, pushing hi-value products or new services
–AUGMENT THE MOMENTS OF VALUABLE HUMAN RELATIONSHIP
Re-think the experience to maintain and give value to person-to-person moments to build up long term relationships
NEW COMPETITORS ARE TAKING MORE SPACE, WITH DIFFERENT APPROACHES AND POINTS OF STRENGTHS
The offering is now larger and clients are in search of trustable and appealing experiences, frictionless and smart: even better if they can simplify relating to a single partner
Banks have already a wide client portfolio and they are often ahead in terms of data analysis, digital development. By implementing bankassurance services this sector may become a threat or an opportunity to work with
–DIGITAL NATIVE INSURANCES
Cost competitive, flexible, innovative, smart… to be evaluated their capability to scale and create profit addressing a wider target
–OVERLAPPING OF SERVICES WITH OTHER INDUSTRIES
Health, auto, properties … Other industries are inserting insurance products all together or insurances are trying to add complementary services around their core business, competing with more solid realities
THE LONG HISTORY ISSUE OF SECTOR’S PERCEPTION AND THE RESEARCH FOR A DIFFERENT PROPOSITION
The marketing director of one of the biggest companies in Italy once told “in terms of perception, we are just behind gravediggers”. Strong words, probably exaggerated, but for sure insurances must address a long story of not positive perception at least.
–OVERALL BAD PERCEPTION
The connection to «bad moments of life», something that may go wrong in your life: no one wants to think about that, it’s a natural reaction
–A COST WITH NO DIRECT BENEFIT
Another difficulty to fight against is the immediate costs with a possible advantage that may not arrive ever or, if so, perceived as insecure, with often complainants and difficulties
–DIFFICULT TO EXPRESS A WIDER RANGE OF PRODUCTS AND SERVICES
If the products are about health, life…it’s not easy to talk and sell. With other products could be easier, but anyway, following also the previous points, insurances must change the narrative and offers, starting from people benefits.
–NOT INNOVATIVE, BUREAUCRATIC, OLD
Let’s see that as an opportunity: there is room to innovate and surprise the costumers, becoming immediately distinctive from the competitors
From research done by Deloitte, insurers now believe that 62% of consumers regard non-insurance products as the most important factor when choosing an insurer.
In the next three years, insurers think to generate over 30% of business from service-based offerings over product-based (a switch from 35% to 61%).
We could finally say that, by 2024, 33% of the premium volume will come from brand new propositions.
It means that visioning a switch is not only possible but probably mandatory, for a target in search of commodities and smart services.
Another fundamental point is the human relationship, the moment of truth and trust between the client and the brand: in terms of customer loyalty, 57% believe it’s access to friendly and knowledgeable staff for assistance.
In the area of DINN! competence, we see a switch from product to insurance experience and the raising need for new related touchpoints.
SWITCH FROM “COMPENSATION” TO HIGHLIGHT THE BENEFITS
Prevention, commodities, integration of cross industries and related products (auto services, wellness domotic…) are possible directions to change the narrative and the proposition in the market
RE-THINK THE TOUCHPOINTS TO ADAPT TO NEW NORM
Show off the newness and interact differently without losing the human touch
Here below three of the possible areas of innovation
SET AND PROMOTE SERVICES, PRODUCTS AND EXPERIENCES STARTING FROM PEOPLE NEEDS BY BUILDING AROUND THE CORE PROPOSITION WITH OUT OF THE BOX CONCEPTS
–CHANGE THE PROPOSITION
Promote valuable added value experiences, to reinforce the positioning, increasing the moment of touch with an attracting reason why
–EXPAND THE OFFERING AROUND THE MAIN PRODUCTS
From auto to car services, from health to wellness, from property to real estate services… Transforming something perceived as a mandatory cost to a useful and smart commodity
–GO BEYOND INSURANCE EXPECTATIONS
Surprise the clients working on brand awareness and loyalty. It may help to focus on specific targets, from affluent to z-gen.
–From a bank branch to a lifestyle club, with the bank products as an enabler of the brand promise of lifestyle
–Extra banking products and services, from shop to travels and multiple events related and appealing to the premium target
-Good traffic generation, brand awareness boost and clients loyalty with a proposition built over a sense of membership, different from any other bank
NEW POSSIBILITIES TO INTERACT WITH CLIENTS HOSTING OR HOSTED BY THIRD PARTIES (AS IN BANKING «AGNOSTIC» MODEL)
In a new and uncertain scenario, a possible direction to balance investments and effort, opening also a new opportunity, could be to create a strategic partnership with complementary entities
–SHARE THE PROPOSITION WITH PARALLEL BUSINESSES
Other realities are struggling or wondering with the same topic of «empty spaces» and related cost issue of locations and touchpoints not so up to date with the current situation and foreseeable changes in the future
– MUTUAL LEADS GENERATION
By joining forces with complementary entities there is the added benefit of attracting and interact with a wider range of possible clients, interested in other services or curious about the common proposition of mixed services and products
– SHARING CAPABILITIES
It’s not easy to transform a business, for insurance to become healthcare, or for a bank to become a restaurant: in terms of service model, ROI, knowledge and permits.
Partnerships, acquisitions, third parties integrations allow adding the right expertise without excessive risks, maybe with a piloting phase
–A multi-services hub hosted by the bank to focus on a specific target(SME-corporate), with a wide offering of business services, consultancy, networking (manged internally or with partnerships) to support the clients business growth beyond the standard banking products
–The space is free to use for the clients, by booking through an app any rooms for personal meetings, workshops: an extension of each client workplace, flexible and smart. The «arena» (free to use as well) is an open space for training, conferences.
-Some rooms are monthly booked by different companies to present themselves or offer specific services along with the bank
DIFFERENT ASPECTS WILL IMPACT THE AGENCY FORMAT, ADAPTING TO NEW SCENARIOS
Huge networks of branches will face an increasing demand for a different model, connected with the digital migration and smart-working models.
From reducing the sqm or change the use destination, to adding new touchpoints or specialize some branch to cover differently the territory (hub and spoke, flagship, quick services, temporary spaces)
–FEWER IN PERSON MOMENTS
If digital will reduce the fundamental moment of human touch, the question is how to attract and set new reasons why to interact. Fewer contacts ask for more quality moments improving the advisory side
–NEW MODALITIES TO MAP AND DEFINE
A sudden acceleration has changed the tools we have, inserting remote interactions. How to keep the same quality of the standard tools with remote systems, mixing moments in distance and moments in presence?
–NEW GOALS AND NEW SERVICES TO EXPLAIN
It is necessary to think of new “experiential items” to express a new proposition, promoting advisory rather than just manage the day by day needs. It means new people’s behaviors, different levels of privacy, different and new solutions to deliver a brand-new approach.
With fewer customers visits, fewer people working day by day, the layout of a standard branch will change. The colleagues will need different work experiences, places to manage remote consultancy: the new layout may open space for implementing newness also for the clients’ experience.
–Switching from office space to a retail dimension
It’s a place for the clients, to better interact with new dimensions to talk and to show off the bank support and capabilities
–Ad hoc modules to explain products and bank activities, starting from people life
–New role of the staff that uses the space to talk, sell, educate, with different levels of privacy
-Possible areas for a professional remote consultancy call
INSURANCES WILL NEED TO RE-THINK THEIR PHYGITAL TOUCHPOINTS TO STAY RELEVANT IN A NEW SCENARIO WITH OPPORTUNITIES AND THREATS:
-SET A DIFFERENT OFFERING STARTING FROM PEOPLE NEEDS, SWITCHING FROM PRODUCTS TO INSURANCE EXPERIENCES
-EVALUATE DISTINCTIVE AND INNOVATIVE APPROACHES AND SERVICES TO ENHANCE THE HUMAN RELATIONSHIP AND A VALUABLE REASON WHY TO INTERACT EVEN MORE
–OPTIMIZE THE FORMATS INTEGRATING NEW EXPECTATIONS AND MODALITIES FOR THE CLIENTS AND FOR THE STAFF