Today, online activity is more rife than ever with a global online spend reaching nearly £268. Ernesto Suarez, Founder and CEO of Gigasure, explains why insurers must rise with the times to meet the demands of their changing audiences and embrace new technology that is quick to access for customers.
With the evolution of technology on the rise, it’s no surprise that Generation-Z are using the internet more than ever. Recent research shows that on average, Gen-Zers spend around 10 hours a day online and their annual global spend online is nearly £268 billion. Growing up with smartphones has significantly increased this generations online activity and systematically changed their purchasing behaviour. They want fast, informative and tech driven product offerings with simple to use websites, apps and they want it all personalised and quick to access in just a few short clicks.
Changes in human behaviour
Historically industries like insurance have been quite traditional and slow to respond to emerging trends, particularly when it comes to technology. This can no longer be ignored and the reality is that with the greater availability of data and insight, insurers now must rise with the times and evolve their products and the way they are delivered to meet the ever-changing demands of their audience. AI too has its place, enabling insurers to create personalised products and services that meet the specific needs of individual customers.
Progression in Insurtech means that we can deliver a much more enhanced product for consumers. With so much behavioural data now available, insurers can get a lot more leverage into customers behaviour to deliver benefits and information that is not only relevant to them but also reaches them at the right time.
Insurers that embrace new technology and data in this way will be well-positioned to meet the changing demands of consumers, providing faster, more customised products that enhance the customer experience.
Personalisation is now key
Research shows that 78% of Generation-Z prefer brands that offer customised experiences, telling us that an old-fashioned and generic approach is not enough anymore.
Data is playing a transformative role in making insurance products more personalised by enabling insurers to better understand individual customer needs, behaviour and risk profiles. Through the use of big data, machine learning and real-time analytics, insurers can move beyond one-size-fits-all policies to offer tailored coverage, pricing and services. This shift not only improves customer satisfaction through more relevant products but also helps insurers manage risk more accurately and efficiently.
Technology is moving insurance forward
In insurance we use data analytics to map risks, set pricing, assess claims and study consumer behaviour which gives us the ability to design products that fit in with what our customers want and need. Technology means we can streamline processes enabling consumers to purchase a policy in just a few simple clicks. It also means that we can give them more of an experience when using our products. For example, at Gigasure we use parametric technology to monitor flights departing. If customers register their flight details on our app and it is delayed, customers will be given the option to choose a real-time cash payment or a voucher that gives them access to the airport lounge. We also offer a similar service for lost luggage. It’s this enhanced experience which gives customers what we call ‘surprise and delight’ benefits that make insurance more interesting.
Technology also means we can give customers more flexibility and option to customise policies to their exact needs and requirements. With just a few clicks, customers can choose the options that suit their itinerary. This also means they can save money by only paying for what they need. We also appreciate that travel plans can change quickly so we built our app to allow customers to add benefits quickly while they are travelling to get instant cover for any activities or personal belongings. This elevates the experience further. The evolution of technology means that Gen-Z have come to expect to be able to access products tailored to their specific needs. They also want to feel in control with customisation that enables them to build a policy that matches their unique requirements.
Technology is raising the bar
The rapid evolution of technology is setting new standards, and its adoption is not a passing trend but an evolving necessity and one that will continue to innovate for the future. Insurtech need to take the opportunity to get tech savvy and align with Gen-Z needs or they will find they get left behind. It’s an opportunity for businesses to re-evaluate and review their offering to ensure that they have the correct features in place to fulfil a tech centric generation, with bespoke needs.
