ACTUARIAL POST: TRUSTS ECOSYSTEM
This article was originally commissioned for Inner Workings, a monthly column written by Tom Murray, in the release of the Actuarial Post in March 2019.
Insurance is widely regarded as a background product, one of life's necessities as most have, but do not think so very exciting compared to most of their other possessions. Rarely do you find that people snap or instagram the moment their policy proposals are approved. In a world, when even the most mundane events are seen as feed for the cruel social average animals, the highest point of the insurance cycle does not entirely make the reason.
When it comes to deciding which life vendor to choose customers, they tend to value solid experience over the news and join a brand they feel they trust. With its nature insurance is a highly dependent product ̵
So it is important to understand what forms the basis for this trust. What are the key factors that inspire confidence in consumers to transfer money in anticipation that the company will deliver on its promise in the future?
The longevity is indeed one of the most important ingredients – most would instinctively rely on a brand that has been around for a long time. The comfort factor in knowing that the company has a long history makes people feel secure, though not necessarily for good reason, that the company will be around for a long time in the future and therefore will be able to fulfill its side of the contract.
Along with longevity comes an automatic understanding of what they do. When life providers have been around for a long time, the majority of consumers have a high awareness of them and have either dealt with them before or known to people who have treated them. Thus, they feel that they know the company well, which automatically gives them the feeling of trust in these companies.
But this is also the result. Trust people to come, not just how well you know them, but how well they know you. You will instinctively rely on people more if they are empathetic and understand your motivations. It follows that brands that understand customers' needs and wishes will be much more trusted than those who do not. That's why many new beginners in the fintech area are so good at building a customer base because they can use the large amount of personal information that is available to drive customer experiences that show a strong understanding of the individual customer.
This is an area where fintech, or more specifically the insurtech market, has an edge. With the help of modern platform technology and focused on how consumers in today's markets interact with their technology, the amount of information these companies can collect about the customers' needs and wishes is enormous. And the Z generation, those born from 1996, are just too happy to provide that information if it leads to a more personal and focused service. This generation is the future of commerce and, according to a recent study by Goldman Sachs, has already been darkened in millennials as an economic force.
With this level of information, the possibility of creating unique personal customer trips is possible, and thus there is the possibility of delivering the level of experience that is valued by the younger consumer base already in place. For this generation, it's not just about making their products and services available in the cloud. It's about re-examining the services that match their lifestyle.
This is where partnerships between several technical offers supported by traditional product management and branding combine to provide a complete package. The novelty of product and service is very important, but when it comes to long-term trust, the advantage of an experienced name that supports the offer is enormous.
The future consists of these ecosystems where insurers, technicians, investment houses and social media platforms combine to deliver tailor-made tailor-made financial products and services that today's generation is looking for. Products and services can be tailored for the individual, while still maintaining the tradition of compliance compliance and financial support. The customers in the morning are a complex individual who insists on tailor-made service. It is the combination of skills and talents that will be able to deliver.