Safeguarding policyholders against daily risk and granting them assurance to provide peace of mind has earned the insurance sector growth and profits over the past few decades. But lately, the business began to change for insurance providers. There has been a decline in growth and profits. The once eminent and glorious billion dollar vertical has a hangover. What happened?
The Internet Changed the Business Fundamentals
Blackberry and Blockbuster are a two of the many leaders in established industries that underestimated, overlooked, or reacted too late the propelling technology. The inception of the Internet drastically changed the modulus operandi of businesses and afterward, it put off a good number of pre-existing companies.
Customers Changed Their Attitude
Customers quickly adapted their behavior to the conveniences of Internet-based service providers such as social media and online shopping. These internet platforms offer many advantages: affordability, simplicity, and comfort. Customers can choose from a variety of services that suit their individual needs.
Policyholders have been expecting this level of service from their insurers for quite some time. Thanks to the internet and market competition, insurance clients no longer need the services of an agent or insurance broker to come to their home.
Customer Experience Is the Key to Growth and Profit
Insurance customers’ interest hasn’t changed, all they need is assurance. Traditional insurance business basement, models, and processes are no longer able to get by the new requirements. This has left insurers willing to adopt these great opportunities unexploited.