Can Insurers really connect with the Millennials?

Merriam-Webster defines insurance as “a means of guaranteeing protection or safety”. Not so sure though that today’s consumers would consider this a representative definition of insurance today. Similar to many long-established industries, insurance processes have become complicated and outdated, with many considering insurance to be unreliable, unfair and far from being protective.

Irrelevant legacy products and cumbersome claims processes have generated a huge disconnect between insurance experiences and the expectations of millennial consumers who are the future insurance customers. Instead of being contracts of good faith, distrust has crept into insurance contracts. Most insurance companies operate on the basis of suspicion rather than trust, and their claims experience is far from enjoyable.

To remain current and evolve with their time, insurers have to fundamentally change their approach. Since different people have different insurance needs, one-size-fits-all policies are simply unacceptable today. Insurers have to revolutionise their policies; their never-ending terms and conditions; their manual processes that require consumer intervention; and their complex claims processes.

Insurers have to become consumer-centric. They have to engage digital native millennials by embracing digital and automated processes to generate contextualised and personalised insurance products, delivered when they are most relevant into the customer’s journeys. They have to eliminate lengthy claim processes by providing immediate, dispute-free compensation. Because that is what consumers expect and demand today.

By tapping into external databases and leveraging technologies such as AI, machine learning, parametric insurance and API, insurers can automate their processes – from dynamic pricing per individual consumer risk, to underwriting, policy management and automatic delivery of compensation. Furthermore, as the industry moves forward, new business models will demand new types of insurance products to meet new risks and maintain alignment with consumer expectations.

Insurers do not need to transform on their own, there are partners and insurance platforms that can help. The innovative insurance players will benefit from:

• Regulated and automated underwriting and claim processing
• New distribution channels
• Entry to digital transformation
• Precise pricing, contextualisation, personalisation and predictability
• Minimal involvement and operational costs
• Full control of risks and reduced fraud

Is this possible? Based on my past and current experience as an insurance executive, I can safely say that it is and that some of us are heading that way. With today’s technological advancements, insurance can evolve to become a completely personal service in terms of price, risk and communication, thereby meeting the needs and expectations of consumers in specific situations. It’s going to be a game changer.

About the Author
Pierre-Olivier Desaulle has over 25 years of experience in the international insurance industry, including numerous leadership, management and consultant roles. As Chief Insurance Officer of Setoo, he is passionate about revolutionising the insurance world through the creation of economically-viable, targeted insurance products that allow consumers to enjoy a well-protected customer experience.