The CIO’s Finance Summit and Insurance Summit were recently held in Atlanta, GA and Cisco was a main sponsor at both events. The CIO Finance Summit provided a great opportunity for executives to have in-depth discussions on the best practices and strategies necessary to build customer-centric organizations. The CIO Insurance Summit brought together C-level executives from the property and casualty, life and annuity, and health segments, along with innovative solution providers and analysts from the insurance industry to discuss the critical technology issues affecting insurance organizations.
Major themes discussed at the CIO Finance Summit:
Channel Integration: Bridging the Business – IT Gap: Many banks are now addressing the gaps between business and IT as they move forward with channel integration and an omnichannel strategy. Marvin Cortez, Cisco Banking Practice Advisor discussed the criticality of building an appropriate business with IT roadmap that supported these initiatives and how Cisco is working with retail banks.
Customer Centricity and Interaction – What Will it Look Like in 5 Years? Meaningful client relationships are fundamental to retaining and attracting consumer and commercial customers. Customer preferences and increasing tech sophistication are causing distribution channels to evolve. Al Slamecka, Cisco Banking Practice Advisor, outlined the evolution of customer interaction and addressed the challenges and opportunities banks are now faced with to create the optimal client experience.
Major themes from the CIO Insurance Summit:
As consumers become more educated and savvy about their insurance choices, carriers are addressing the need for greater customer centricity holistically with better insight, optimized processes, and enhanced customer reach through direct and indirect channels.
Bridging the Gap, Today and Tomorrow! This session focused on how business and technology gaps are creating both challenges and opportunities. Cisco’s Rob Cornwell, Insurance Practice Manager, and Don Canning, Financial Services Practice Partner Manager, addressed how insurance industry trends are impacting lines of business and the resulting impact on IT strategy across Data Center, Networking, Collaboration and Security as we move toward the Internet of Everything.
IoE for Insurance Roundtable: In this lively exchange, roundtable participants discussed how the Internet of Everything is affecting the Insurance industry. Cisco’s Insurance Practice Advisor, Jeff Tumpowsky, opened with the observation of how the industry is seeing new data sources and how this data is driving new products, intelligent processes, tailored communications and new insights around risk. He explained where opportunities lie, first mover advantages, and what value is at stake for insurers doing nothing.
These two summits provided an excellent opportunity to exchange ideas, share successes and paint a vision of where the banking and insurance industries are evolving to as they address customer centricity, omnichannel sales and service and creating new business models. If you attended, let us know your feedback from the event in the comments section below. And if you could not make the event, please join the conversation.
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 »
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.
Solution architectures are typically derived from open-ended questions designed to discover customer needs. However, Cisco approaches customers with insights-based assertions that rest on the belief that true innovation emerges from disruptive ideas that make customers aware of unknown needs.
According to Gartner’s report “Agenda Overview for P&C and Life insurance 2014,” three concerns for change stand out for insurance companies -- profitability and business growth, cost savings, and customer centricity. The study further indicates insurance executives struggle to maintain legacy products while simultaneously addressing concerns and uncertainties of innovation. Read More »