Martyn Mathews, MD, SSP Broker says that technology should operate silently and be used in ways that enhance rather than overshadow the human element of insurance.
There has been much talk about insurance becoming invisible in the future as AI (Artificial Intelligence) and the IoT make embedded insurance appear, just when customers need it, wiping out the need for cumbersome searches and potentially lengthy onboarding. The industry hasn’t quite disappeared under a cloak of invisibility just yet, but there is already masses of data and silent technology seamlessly supporting improved customer service and other core functions of insurance while enabling innovation. This technology provides exciting opportunities, but we must never lose sight of the needs of the end customer or the value of human input in developing innovative ideas and pushing the boundaries of technology.
Technology – an invisible means to an end
Technology has evolved from being a tangible part of the insurance process used by specialists to an integral, almost invisible, component of the industry. The younger generation entering the workforce view technology not as an end but as a means to an end. They don’t necessarily want to understand the intricacies of the systems they use, they just want them to work.
At the same time, when a customer purchases an insurance policy for their car, home, or loved ones, they are not concerned with who provided the software or built the technology. They are focused on the protection it offers and how much it’s going to cost them. Without wishing to state the obvious, the role of technology providers is to ensure that the necessary systems work reliably, efficiently and unobtrusively in the background, allowing insurers and brokers to provide exceptional service to their customers.
When technology fails, as many businesses and individuals experienced with a recent Microsoft outage, the disruption is starkly apparent.
The same is true when new technology is adopted for technology’s sake. For instance, an insurance company wanted to use drones to assess damage in the aftermath of hurricanes in the Caribbean. While the idea was technologically exciting, the practical implementation posed significant challenges. So, rather than focusing on the novelty of the technology, they were encouraged to consider the end goal: improving the claims process.
Sometimes, the best solutions are not the most technologically advanced but the ones that effectively address the customer’s needs. It’s about balancing innovation with practicality and ensuring that technology serves its intended purpose.
During severe floods, insurers often set up teams on location to assist affected customers directly. This hands-on approach demonstrates the value of human interaction and empathy in the claims process. While technology facilitates a rapid response, the personal touch makes the real difference. Customers can speak to representatives, see the branding, and feel reassured that their claims are being handled with care.
Balancing innovation with clear goals and practicality
The insurance industry is at a fascinating crossroads as the landscape adapts to consumer appetite for less traditional, more on-demand products. From travel insurance, to gadget protection to gig economy cover, the global on-demand insurance market size is expected to
expand at a compound annual growth rate (CAGR) of 21.2% by 2030, largely through mobile apps that make it easy to purchase policies.
Responding to this demand for greater flexibility, a smoother, faster search and buy process and frictionless claim, the industry is undergoing a digital metamorphosis with many insurance organisations moving from legacy systems towards more modern platforms.
It’s not easy by any stretch of the imagination and it’s proving the worth of collaborations and partnerships with suppliers. The most successful partnerships occur when insurance providers have a clear vision of what they want to achieve, understand their technological ecosystem, and can identify the gaps they need to fill. This clarity allows providers to offer targeted support and contribute to building a robust technological infrastructure.
Recognising the value of the human touch
The role of technology in insurance will continue to evolve. As it does the industry should remember that the ultimate measure of success in insurance is not the technology itself, but the quality of the customer experience it supports.
Software enables insurers to innovate and meet their customers’ needs, but it is the insurers who deliver the final, tangible benefits. In essence, the effectiveness of insurance technology lies in its invisibility. By working behind the scenes, technology providers allow insurers to focus on what truly matters: protecting their customers and providing peace of mind.
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