Insurance has the unfortunate reputation of being boring. The prevailing attitude from consumers and businesses is that they have to pay premiums for a piece of paper and often never see any return. The danger of this belief is that it affects many facets of the industry, with probably the biggest issue involving recruitment efforts to attract future generations to the industry.
The truth is that insurance is not boring. In today's fast-paced technology arms race, all businesses must adapt to consumer buying and service demands. Insurance is not insulated from these rapid changes, and distributors and insurers are examining all areas of their operations to adapt.
There is a lot that is interesting going on in the industry that seems to fall under the radar. If "more people only knew," we would have an easier time fighting that "boring" image.
Here are five examples of how insurance is far from boring:
1. A heated and lively advertising scene. For direct writers, the brand wars rage on. If you watch even a couple of hours of TV a day, you'll see commercials by GEICO, Progressive, Nationwide, Liberty Mutual, USAA, State Farm, Farmers, Esurance, Allstate or The General. The industry spends billions of dollars a year on advertising and there is no indication that it is going to end anytime soon. Talented traditional and digital marketers are faced with the challenge of making insurance fun. Not an easy task, but for young people who dream of going into marketing and advertising, there is vast opportunity in insurance advertising.
2. The growth of UBI. Usage-based insurance (UBI), which includes telematics, is a hot topic in the industry, but does not seem to have the same level of awareness among the mainstream public. UBI is not only a revolutionary innovation within the context of insurance, but for society in general. This new world of individualized and/or behavior-based pricing will invite more changes for auto owners, who will see their interaction with insurance change dramatically in the next decade. This will spur ancillary services with the aim of providing value-added benefits to drivers, beyond simply cost savings. The industry is dying to attract fresh faces to harness this new world of insurance. We have yet to scratch the surface of how else this technology will be implemented, making it an exciting frontier for those professionals involved in the coming decades.
3. The rise of the smart car. Autonomous vehicles and "talking cars" will become a reality sooner than later, which has stark implications for both personal and commercial auto insurers. Personal insurance insurers are especially trembling at the thought that the industry could lose part of its fundamental value proposition–insuring driver liability–as autonomous cars could eliminate this risk. What's left to insure? That's what 21st century insurers are grappling with, and they will have to think of how to replace this lost revenue. So for all the budding corporate strategists and MBAs out there, could there be a more interesting challenge than to evaluate and analyze such a compelling threat faced by a $170 billion auto industry?
4. Creative use of consumer technology. It's no secret that most people do not read their insurance policies. Such is the struggle that many insurers have faced for decades. In Florida, Security First Insurance is providing personalized videos depicting a snapshot of a policyholder's coverage information. Only time will tell if people will be more compelled to view videos of their coverages but again, this demonstrates how an insurer is grappling with how to make an intangible product compelling and not simply a legal document.
5. Rising to the challenge of mobile technology. The mobile realm is a battleground for strategists, marketers and IT professionals alike, and the insurance industry is fighting it out vigorously. We need the best and the brightest in IT to make sure it remains on track to meet the demands of the mobile device user. One of the coolest things out there is the ability to scan your VIN number on your mobile phone to initiate a quote. And there are many more mobile app capabilities for sales and service, with even more yet to be developed.
Another nifty example is evidenced by MetroMile Auto Insurance, a usage-based insurance carrier. Its free app sends a text notification 12 hours and one hour before street sweeping time, to help customers avoid parking tickets. Although this may not have anything directly to do with insurance, it's the type of creative value-added idea that insurers will need to keep and retain consumer attention.
Another example: small regional insurer Direct Auto is partnering with retailers such as grocery stores, car dealerships, malls and title loan companies to set up kiosks where cosumers can get auto insurance quotes in as little as 60 seconds and insure drivers within 5 minutes. Again, it's hard to say how this will play out in practice, but it's proof of some creative thinking by insurers.
When you're involved in an insurance claim, you usually have to set up an appointment with a claims adjuster to evaluate and appraise the damage. Esurance recently unveiled a "mobile video" option in which claimants can communicate with adjusters through their phone or tablet. Esurance already has a strong brand affiliation among young drivers they are constantly thinking of new ways to make the dreaded claims process more palatable and efficient. With the prevalence of FaceTime and other webcam technology advancements, this demonstrates that there is ample opportunity to exploit cutting-edge consumer technology and apply it to insurance. Insurers are even discussing the potential use of drone technology in the claims process as a way to survey property damage.
These trends are only a hint of what's to come. The insurance industry desperately need talented, passionate people to help advance their businesses and adjust to the ever-changing consumer.
Insurance touches everything and makes the world go 'round. So is insurance boring? No way!
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