Insurers must embrace digital technology if they want to reach customers

Insurers must adapt to digital technology if they want to communicate effectively with customers, a new report by Ovum has claimed.

The technology analyst said firms should work toward customer-centric marketing which will target individuals across various different media and devices.

Ovum’s Insurance Marketing in the 2016–2018 report claimed that firms must have insurance software which was capable of capturing all interactions with customers and have the ability to alert an insurance broker, sales agent or financial advisor if required. It added that firms needed to integrate these engagements with core insurance systems such as claims, billing and policy management systems.

“Insurers’ systems of engagement need to be tightly integrated with their systems of record to better manage the entire customer experience from customer-centric marketing to business acquisition to customer service,” the report said.

Ovum said, with suitable technology in place, insurers could segment markets and customers and track the success of its marketing and the profitability of customers for each insurance line.

“Insurers will be challenged to support customer-centric marketing during the period 2016–2018. But in that period, insurers will find themselves in a marketing environment in which more targeted marketing messages must be delivered more quickly to a growing number of digital platforms to reach specific customers,” said Barry Rabkin, principal analyst for insurance technology at Ovum.