The Covid pandemic has accelerated digital adoption across industries – with a proliferation of super apps and associated digital ecosystems. The average smartphone user in Southeast Asia is now active on at least four major platforms per month.
In insurance, however, digital sales still only account for a small fraction of sales. Recent research by Boston Consulting Group (BCG) found that only one in eight insurance customers preferred a fully digital insurance purchase journey. For more complex life insurance products, this rate was even lower. However, the study showed that around 70 per cent of customers wanted to complete at least parts of the journey digitally – be it getting advice, comparing quotes, or finally applying for and buying an insurance policy. Additionally, they wanted to switch between online and offline channels seamlessly.
Intrigued by the vast customer base and rich customer data of digital ecosystem platforms, many insurers have been investing in partnerships with such platforms to sell micro-insurance products and generate new leads for their insurance business. However, few have been able to successfully convert such digital leads into high-value, long-term life insurance sales.
A recent joint whitepaper by BCG, Income Insurance, and ZA Tech explores how to successfully turn digital leads into high-value insurance sales. The whitepaper is based on the authors’ first-hand experience designing and implementing a cutting-edge omni-channel operating model, outperforming typical lead-to-sales conversation rates by three to five times.
The whitepaper unveils five key omni-channel success factors that drive such growth:
- Seamless cross-channel journeys: Since customer preferences are fluid, a seamless continuity across channels and stages is paramount – data and context need to be carried over in real-time without any process repeats.
- Continuity of a serving “bionic” advisor: Customers need to be paired up with a best-suited, dedicated advisor to ensure an end-to-end trusted relationship. Insurance advisors need to become “bionic” – to be empowered and trained with the right set of digital engagement tools and coaching on digital relationship management.
- High-quality, pre-nurtured leads: Insurance is a low-engagement product – thus, multi-stage nurturing initiatives need to be established with platform partners to gently nudge and warm up leads for the
- Attractive hook products and propositions: Few people would spend thousands of dollars on life insurance after encountering an offer on a digital platform. Affordable entry-level insurance products bridge this gap, providing a gentle introduction to life
- Plug-and-play integration in partner platforms: Insurance is hardly ever a digital platform’s top priority. To become a partner of choice, insurers need to provide a “zero tech integration effort” solution, allowing platforms to seamlessly work with insurers with minimal effort on tech build and
The authors also outline a dozen important features that insurers need to implement to be successful in omni-channel and sketch out how to do so.
To download and read “Omni-channel in insurance: Successfully turning digital leads into high-value sales” in full, please click here.
Source: ZA Tech
