Customers of insurance companies have been relying on the adage Uberrimae Fidei (Utmost good faith) since the first contract was written in 2100 B.C. within “The Code of Hammurabi” (ref.), meaning that when something goes wrong (accident, illness, death, etc.), the company they have been paying premiums to will take care of a customer’s claim, process a claim and pay the insured some form of reparation financially or otherwise to make the customer “whole.”
The equilibrium of the equation remains “stable” for the insurance company as long as the pool of premiums exceeds total losses and for the customer, claims are paid in a timely manner and service is sufficient. However, technological advancements have increased the average customer’s expectations. The Internet and mobile devices, as an extension, have granted consumers access to endless amounts of data about products, opinions of those products, and experiences with those products. The game has changed. Read More »
We recently attended PegaWorld in National Harbor, Maryland, on June 8-10. The conference focused on how businesses today must adapt to technological innovation and utilize new solutions that deliver business agility and empower organizations so they can rapidly close execution gaps and seize new opportunities. Pega’s investment in a customer-centric strategy enables digital transformation, which is essential for an Omnichannel execution strategy that demands a new approach to software.
Pega 7 is a best in class Business Rules Engine (BRE) platform led by Chess Master and Founder Alan Trefler. These new BRE capabilities enables Omni-Channel UX™, Next-Best-Action and Business Process Fulfillment, empower financial services firms to transform the way they engage with their customers, simplify their operations and adapt to market changes. Read More »
Financial Services firms are being challenged and forced to change the way that their applications, information, content, compute, storage, and network resources are deployed and consumed. It is a multi-dimensional issue that is forcing financial services firms to change of how IT is delivered. They are beginning to look for ways to stretch their data centers, as they often need more compute and storage capacity than their own facilities provide, especially during those peak high-demand times. The move is toward the service delivery of IT through cloud computing, a dynamic and service-oriented delivery paradigm that organizes and allocates IT-enabled services to meet business demand as needed.
Challenges With Financial Services IT Delivery
Data centers are costly to build and operate, but there are times when you need more resources. Cisco’s InterCloud solution lets banks create a hybrid cloud to extend their data center and cloud capacity when needed. Through InterCloud, banks can store more data and have more computing power, operating just as if it were in an on-premises data center. InterCloud could also be used to augment current big data and risk/analytics environments that banks have deployed in recent years. In many cases, additional compute capacity is needed only for a short time in order to run certain risk models or to provide additional reporting for regulatory requirements. Read More »
The situation that many IT people find themselves in today is dripping with irony. They’ve deployed so many innovations over the years to address so many business challenges, that now most of their time is dedicated to simply keeping their systems running. Without incremental resources during these lean budget times, their new innovation cycles decline in direct proportion to their past innovations.
Given the current budget realities, how can IT break out of this innovation trap?
On August 1, 1981, the world was introduced to Music Television as the first MTV music video, “Video Killed the Radio Star,” by The Buggles debuted. Today, music videos have grown from a pioneering use of video content to help convey the message of a song, to an automatic accompaniment to newly released music. Oftentimes, the song is now the background to the greater story told via video. The combined use of “music” and “video” to convey the artist message is a consumer expectation enhancing their customer experience.
So what does this have to do with insurance?
Today, many customers are increasingly turning to the internet and mobile devices to shop for insurance and interact with insurance providers. Direct writers and technology savvy providers like Progressive, Geico and Esurance are experiencing rapid customer growth. This growth has been supported by offering customers cutting-edge mobile technology services, while traditional insurance companies, supported by agents, are now challenged to keep up or risk losing market share. In fact, Geico recently surpassed Allstate for the number two position in auto insurance market share; outpaced only by long time industry leader State Farm.
There is hope for the insurance agency distribution model, however. The use of agents to purchase and handle insurance transactions is not likely going away. There are still many products and services that consumers prefer to interact with an agent for. The expectation of that interaction, however, is quickly changing. Today’s consumers live in an anytime, anywhere, any device world. This trend has become a main contributor for how we receive our news and information. It’s also how we make many retail purchases, access our entertainment and increasingly, how we choose to interact with insurance and financial services providers. Retail banks and wealth management firms have already begun offering real-time, virtual interactions with their customers via live “agents” or “advisors”. While we’ve been predicting the movement of this trend toward the insurance industry, Esurance’s recent release of the “Video Claims Appraisal” has provided a wake-up call and “shot across the bow” for insurers.
You don’t have to own a proprietary Amazon Kindle to get “Mayday”-like assistance at the touch of a button on your tablet. Today, technical capabilities that allow customers to escalate conversations and engage in real-time are being deployed throughout the market place. Insurance consumers will also have the ability to click to “connect now” from a company website or mobile application for on the spot virtual interaction with an insurance agent or representative. Consumers that need help with a quote, require assistance after an accident or loss, or who would like help with insurance or retirement planning can click to “connect now” anytime, anywhere, from any device they choose.
According to Cisco’s Visual Networking Index, video interaction is projected to overtake video content in volume by 2018. We use video today to stay in touch with loved ones, friends, colleagues and business partners. Now, we can use video to interact with our insurance agent when, where and how we need them. Savvy agents and carriers will recognize this trend and follow it, in order to help further differentiate the services they provide to their customers. Those who do not acknowledge the video trend in insurance and begin utilizing it will be bogged down in their old ways of having to travel to the insurance agency when help is needed, work their way through a call center, make their way online, or worse, send an e-mail or written correspondence.
Today’s consumers can and will choose to interact with their insurance agents and providers via video. However, those companies that are providing multiple, convenient avenues for customers to interact with their agents will likely lead the industry. Cisco is changing the way we live, work, play, and now with video, the way you interact with your insurance agent! Learn more about Cisco’s solutions for insurance here.