FEATURE: CUSTOMER EXPERIENCE
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Practical disruption
in insurance
While there is much talk
about the disruption of
insurance through cutting-
edge technology that will
fundamentally transform the
way the industry works, Lee
Kuyper, COO at SilverBridge,
says the focus should instead
be on how it will improve the
customer experience.
I
n general, the experience of buying,
changing, cancelling, and claiming on
insurance policies has improved. But
insurance is still not something that would
be considered a pleasant experience.
Increasingly, I see insurance becoming less of
a stand-alone industry and more integrated
into the events that trigger the customer’s
need to get insurance in the first place.
Africa is known for adopting technology
quicker than in some other regions. This can
largely be attributed to the infrastructure
challenges that create a bigger need for more
effective basic functions to be delivered.
Mobile banking is a case in point. The
adoption in Africa was far quicker than in
most developed ones around the world. This
was driven by the fact that branch and ATM
infrastructures in those countries that have
embraced mobile banking are virtually non-
existent or largely inaccessible.
Even though the insurance industry is still
waiting for a leader that will bring significant
change, the application of practical
technology solutions is making the processes
inside insurance more seamless from a
customer perspective.
Just compare how easy it has become to buy
insurance today than a few years ago.
Comparative advantage
For example, when someone buys an asset,
they can get it insured at the point of
purchase given that all the details about the
buyer and the asset are already there. There
should be no, or very little, additional effort
for the customer.
Technological shifts
Even though there are established ways of
working in insurance across Africa, insurers
on the continent are open to technology-
driven change.
Most South Africans know how some insurers
use technology-based ecosystems to develop
solutions around people’s lifestyles. This not
only delivers better service and products, but
also helps these insurers better understand
their customers to more specifically target
their needs and price their risk appropriately.
This is a model which is now becoming
popular across the globe.
Many African insurers work with smaller, less
frequent insurable events. Termed micro-
USING AI WITHIN ENGAGEMENT
POINTS, INSURERS CAN UNDERSTAND
CUSTOMERS ON AN INDIVIDUAL LEVEL
IN VIRTUALLY REAL-TIME.
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INTELLIGENTCIO
SilverBridge COO Lee Kuyper
insurance, technology is a key component
of these types of offerings. Similarly, many
global insurtech companies are applying the
same approach to niche insurable events.
While most of the ‘disruption’ that
is occurring in insurance is just about
improving the interactions and experience
of the end customer, there are also some
advancements being made which are more
fundamental. Advanced technologies like
Artificial Intelligence (AI) and Machine
Learning are moving from simply being
about the tech to becoming part of solving
real business challenges.
Historically, insurance pricing is based on
actuarial models built up over the years
using statistical methods. Using AI within
engagement points, insurers can understand
customers on an individual level in virtually
real-time. This enables them to more
accurately predict what will happen and
can approach pricing and risk management
completely different.
This new age of insurance will be based on
solutions that are far more customer-centric
and relevant to people on an individual level.
It is unlikely that it will arrive as an event but
will rather be reached through real practical
application of technology that in most cases
already exists. n
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