Insurers underneath strain to enhance the shopper expertise
“Look at the big tech companies and how they actually helped their customers conduct other transactions. A major focus of Big Tech is to make the customer experience more seamless and to reduce friction points on their customers’ shopping trips. Therefore, customers are getting easier to deal with their service providers. “
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According to Williams, the automotive sector is also full of “ecosystem orchestrators” – companies who use their proximity to customers to really simplify the customer journey.
In August 2020, Elon Musk, co-founder and CEO of Tesla, officially launched Tesla Insurance, a competitive comprehensive insurance offering that aims to offer Tesla owners up to 20% lower rates. According to the company, Tesla Insurance is able to offer insurance at a lower cost than standard auto markets because it “can take advantage of advanced technology, safety and serviceability [its] Cars ”and can rate the insurance based on the benefits of Tesla’s active safety and advanced driver assistance features.
After the announcement, outspoken entrepreneur Musk said Tesla had “a much better feedback loop” than traditional insurers. He added: “Obviously nobody has to choose our insurance. But I think a lot of people will. It will cost less and be better. Why shouldn’t you do it? “Essentially, Tesla and other automakers are using their proprietary data, insights, and connections with customers to” simplify the journey to buying insurance and helping their customers manage their financial lives, “Williams said.
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“These are all things that happen outside of the insurance sector, and for insurers, it just means we need to do something more and really think about how we can use technology to innovate,” said Williams. “And that happens. I think we see that especially in this COVID world.
“I think innovation will have a huge part in how the insurance sector drives growth, creates new product opportunities, and how it looks for new market opportunities in terms of partnerships and things like that. It also drives financial results – sales, margin expansion, stock prices – all of these are the results of innovation. ”
Ultimately, innovation is a means of keeping pace with changes in the insurance industry, keeping up with changes in customer expectations, and helping customers live their lives differently.
All of this has to do with the notion of ‘connected’ insurance and the possibilities that connectivity offers the insurance sector. According to Williams, “connected” insurance is shifting history away from insurers who only write a policy and pay the claim to really help customers live better, safer, more financially stable lives. This more meaningful connection, partly based on innovation, will increase the customer experience tenfold.