“So, who wants to fly to Munich to support your colleagues at the Digital Insurance Agenda Munich event?” This was the question our events guru Naomi asked me. “Oh and by the way, Oktoberfest is on at the same time”. I can definitely do that!
What a fabulous week, and I am talking about the conference (more about the Oktoberfest later…)
So here are my top three takeaways on the conference;
Trust is oh so important but can be oh so difficult
For a business built on ‘Utmost Good Faith’ and as a cornerstone of our industry, we are lacking in trust, both from an external and internal perspective. From that, I mean customers have a low opinion of insurers and by default insurers tend to distrust their customers. A vicious cycle that we need to move away from, and the responsibility and prerogative for doing this is surely with the insurer.
The conference opened with a keynote from Tom van den Brulle, Global Head of Innovation of our partner, Munich Re, who highlighted the challenge that trust is more difficult for insurers to gain over digital channels, especially when compared to trust gained when humans interact. This was backed up by statistics (soon to be published so I won’t steal their thunder!) gathered by TietoEvry. Even amongst the most digitally cognisant populations (ie people much younger than me!) there are low levels of trust in chatbots and digital channels, which jump much higher when hybrid channels combine digital and human.
This is a real conundrum for insurers to tackle. Insurers are rushing to digitise their processes and customer journeys to serve their customers better and the customer has yet to fully trust and embrace these means. We believe there is a better way… trust automation, which will help insurers move away from default distrust to delighting their genuine customers.
Trust Your Customer: How digital trust strengthens customer loyalty
Addressing the Protection Gap
Amelie Breitburg from Lloyds Europe gave an interesting talk covering lots of ground about new and emerging risks in climate and cyber, and the interconnectedness of these new risks. These risks are not independent, but rather systemic. Moreover, she spoke of the need to address the Protection Gap for those who need insurance and can’t afford it, who choose to house insurable risks in their bank account or on their balance sheet. Our mission to help insurers make insurance more honest and reduce fraud is consistent with addressing the protection gap, and if we can help reduce the burden of fraud, insurers can price their risk more competitively and hopefully insurance can be more affordable for all.
Focus on your core and get the best to do the rest
David Stanchon, COO of Wefox gave a 15 minute talk that focussed on the customer, explained how their research showed that 70% of customers think that insurers are ripping them off. He called for a co-operation between insurers and insurtechs to improve outcomes for customers. David asked the question, what is an insurer best at? Understanding and pricing risk and allocating capital to risk. Then he asked are you as an insurer the best at making core systems? Or CRM systems? Or fraud detection platforms? If not, why do it yourself, find the best in the world at that and do it with them.
As for the Oktoberfest, it surpassed all my expectations and we had a fantastic night, found a free table in a great spot (a feat in itself) in the tent of the Crossbowmen, made new Bavarian friends, consumed the local beverages and delicacies in moderate amounts, danced on tables and sang along to the oompah band (yep, even my wife doesn’t believe the moderate statement!).
Until next year…
Digital customer journey brings a lot of distrust, but there are ways to fix it. Lear how to increase trust and straighten the loyalty of your customers via digital channels.