The digital world offers insurers many ways to reach and serve their customers. Opportunities for innovation will emerge as the number of devices increases and the culture of interactivity grows.
Delivering information cannot be easier now, than it is through online channels. First of all, as per insurers it is very efficient and scalable, as well as the easiest way to obtain information. Not only this, the complexity of insurance webpages allows users not only to get information about products and services, but it allows them already to buy a package, re-frame it, use it in case of emergency and complain about it to the company.
Digital Marketing seems to have a lot of advantages for insurers; however, firms are still struggling to develop an integrated approach to digital marketing that supports their business goals. Such an approach requires a combination of business understanding, marketing savvy and deep technology capabilities.
Carriers that develop an effective integrated digital marketing strategy can:
·Better acquire, service and retain customers.
·Gain insight into customer needs and offer targeted products.
·Support a larger multi-channel distribution strategy.
·Increase revenue and reduce costs.
Used effectively, integrated digital marketing can enable a carrier to build better customer relationships, grow market share and drive growth. From the research I have done on the combination of insurance companies, their policies and marketing, I have found several issues which are limiting heavy investments in online activities.
Some of them are:
§Price of insurance may be given as guide only - not binding
§Some insurance companies quote only by e-mail or phone
§Insurance policies issued online may be invalid in law in some countries
§Insurance may only apply to only one country - but is it yours?
§There are few global insurance brokers so far in terms of being able to offer for example auto cover in any territory with online application
§Difficult to get a one-click comparison of all policy premiums from different insurance companies, all with correct insurance data, and able to issue temporary cover immediately on payment of first insurance premium by credit card
§Sites offering quotes from many insurance companies rarely include the whole market - because some insurance companies are not prepared to pay them a commission. And that means the cheapest commission-free deals may not be on these insurance ”portals”
§The process of getting a quote online becomes frustrating as too many data are necessary to be provided to the website, which will very often lead you to another website where you will have to resubmit your data or fill another form!
§You have no guarantee that all the best insurance deals are being presented fairly. Are the commission rates the same? Is the website steering you towards insurance policies which give the broker the highest return? A good site will show you exactly how much of your insurance premium will go to the broker - indeed a legal requirement in some countries. Some companies accept processing of a credit card payment as proof of insurance cover. In other words, if the insurance company takes payment on a certain day, it will appear on your statement as proof that they have agreed the policy. However there is still a problem for the insurance company to be sure you are who you say you are, that your address is correct, that the details are accurate. This is particularly an issue with payouts for insurance claims.