Worldpay recently exhibited at Europe’s largest insurtech event, Insurtech Insights Europe. The event provided a fascinating insight into a fast-developing space where new technologies are emerging, policyholder expectations are changing and industry norms are being challenged. Here are three key trends that we learned about.

1. Customer experience (CX) is a top priority

As the industry becomes more competitive, insurers are looking for ways to differentiate themselves by providing better service to their policyholders.

• Digital journeys: Insurers are creating streamlined digital journeys using mobile apps and online portals that allow customers to manage their policies and file claims more easily while storing all information in a single platform. Some companies are even using virtual reality (VR) to build an immersive experience of the whole insurance process².
• Payment methods: Partnering with an industry-leading payment service provider (PSP) can also enhance CX. Offering a wide variety of payment methods increases convenience and conversion rates – 38% of potential new policyholders would abandon their cart if their preferred payment method was unavailable³. Furthermore, having the ability to send real-time payments to claimants can enable them to access the funds they need faster.
• Tailored products: Offering personalized coverage options to fit the policyholder’s individual needs can also boost CX. For example, a car insurance provider may propose policies based on mileage driven, resulting in more accurate and affordable premiums.

2. Artificial intelligence (AI) in insurance

The insurance industry is no stranger to the benefits of AI. From fraud detection to risk management, AI has already helped companies reduce costs and increase efficiency. Many are currently using chatbots to automate customer service and provide quick and accurate responses to enquiries. These bots can handle a variety of repetitive and labor-intensive tasks, from policy renewals to claims processing, rarely needing human intervention.

One major advantage of AI is its ability to learn from interactions with customers. This allows insurers to continually upgrade their chatbots, making them more efficient and better equipped to handle complex issues. Predictive analytics is another area where AI could be useful. By analyzing policyholder data, companies can identify potential risks and offer personalized coverage options. For instance, a health insurance provider may use AI to examine a customer's medical history and suggest preventative care. This can not only reduce costs for both the insurer and the policyholder but also improve the CX.

3. The human touch is still necessary

While digitalization is transforming the insurance industry, it's important to remember that human interaction is still crucial in more sensitive areas. The emotional intelligence of a human cannot be replicated⁴.

Recognizing this, insurers are investing in training and development for their employees⁵. We are also seeing a move back to face-to-face support ⁶. In-person interactions can facilitate clear communication, which is essential for ensuring that policyholders understand the terms and conditions of their coverage. Providing empathetic support, expert knowledge and effective communication helps build trust, which can lead to enhanced policyholder loyalty⁷.

The future

The insurance industry is experiencing significant disruption with AI and digital platforms redefining how insurers interact with their policyholders. Despite the numerous benefits of these tech advancements, the emotional support of a human still plays a vital role. Finding the right balance will be key to staying ahead of competition.

Interested to learn more about the future of payments in insurance? Have a look at further insights from my colleagues here.

References

¹ Insurtech Insights (2021) Why CX is Now Business-Critical for Insurers [Accessed: 06/03/2023]
² Sapiens (2022) 3 Insurers Benefitting from Virtual Reality: Mini-Case Studies [Accessed: 06/03/2023]
³ Worldpay from FIS (2022) Power Your Payments [Accessed: 06/03/2023]
⁴ Brookings (2021) The wellness industry’s risky embrace of AI-driven mental health care [Accessed: 07/03/2023]
⁵ The Oxford Group (2021) Leading with emotional intelligence [Accessed: 07/03/2023]
⁶ Allianz (2022) Allianz looking to buck the trend on broker services as it relishes a return of face-to-face broker trading [Accessed: 07/03/2023]
⁷ EY (2021) How can insurance protect the customers who need it most? [Accessed: 07/03/2023]

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