What will the future of insurance look like? What will be the impact of technology on the insurance industry? How will this affect you as consumers? What will the role of advisers be in the future world?
Machine Learning and AI really excite me. With the ability to interpret so much data, using this technology will allow us to focus more on you the consumer with the crushing of data being left to technology.
WHAT DO WE NEED AS AN INDUSTRY?
When you come to me, one of the main things I do is research the cover that you have in place currently, the policies that I recommend and compare these to those available in the market. I pride myself on getting a really good understanding of what you are looking for which helps me to make the most appropriate recommendations for you taking a long-term view.
The reason a long-term view is so important is that the process of applying for insurance is a massive pain in the arse and is really time-consuming. Most insurers upgrade their policies as medical definitions change and also add new features to their policies retrospectively. This means that there needs to be a really compelling reason in my belief to switch.
This takes hours of my time to do and I believe that there needs to be a better way of doing this. I believe that technology (AI & machine learning) could step in here and make this process amazing. There are early developments in this space, however, this is still a largely manual process which I believe could be done so much better.
WHAT IS THE ROLE OF ADVISERS GOING TO LOOK LIKE IN THE FUTURE
There is a lot of fear from adviser about where they will fit in in the future. I believe that there will always be a role for advisers but the role will be more focused on relationships and understanding rather than data input and comparison.
One thing I do with you early on is getting “permission to pester”. I know this sounds ridiculous but, in reality, insurance is not sexy but is a necessary evil. This means that my role often becomes the person who follows up with you regularly to make sure this gets completed so you have the peace of mind you need but don’t necessarily prioritise with everything you have going on.
My belief is that as your adviser, my role is to provide as much information and relevant education that you can consume at a time that suits you (videos, regular emails, Podcasts etc). As your needs will change over time, this regular content will be available on demand as opposed to having to wait until scheduled review periods.
As your adviser, my role also becomes to be your advocate and support during claims. I love assisting in the claims process and will always get involved to help reduce the onset of claim fatigue that sees a lot of claims submitted directly to the insurer, stopped before being successful.
WHAT WILL BE THE ROLE OF INSURERS IN THE FUTURE INSURANCE MARKET?
We have already started to see some changes in the insurance space with the big insurers acquiring the smaller players. What I hope this does is see these insurance companies specialising in certain market segments and make the policies better for you.
I hope that these insurance companies realise their limitations and share expertise to make the overall experience better for you. Using the AI or Machine Learning technology, this could also remove the conflicting advice that has been evident from recent enquiries into the sale of insurance.
I believe in the future we will also see more insurance companies offering supplementary benefits which will see you getting something back from your insurance policies without having to make a claim. The biggest and most successful of these to date is the AIA Vitality Program which offers discounted Qantas flights, 1/2 price gym membership etc (check out this video for more detail).
These types of programs reduce your need to claim but also give you a sense of getting something back from the premiums you are paying.
I am excited about what the future of the insurance industry looks like and I believe this is only going to get better for you as consumers.
Technology will play a huge role in this by giving you the confidence when selecting products and allow me to spend more time deepening relationships and providing value on an ongoing basis so it is available to you when you want to consume it.
Sceptical about insurance? Where do you think the industry is heading?
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