Lessons Learned from the X’MAS festivities
I have followed the insurance industry for some years now. I was very excited and pleased about most insurers during this Christmas festivities. My excitement was base particularly on seeing most insurance companies taken advantage of technological innovation, especially social media. Most of them sent messages wishing their customers, clients, policyholders and the general public a merry Christmas and a prosperous new year. I know this is not the first time some insurance companies are doing this but I was overwhelmed by this action for three main reasons;
- The number of insurance companies that were involved in this has increased. I was pleased to see a lot of insurance companies, both life and non-life companies involving themselves in these activities. This means that most insurers are keeping the data of their clients. This can indicate that most insurers are now beginning to appreciate the impact of social media in their business operations. The fear that most insurance companies had in using social media is gradually going down.
- Another fascinating thing was how the messages were designed. Most of the messages were not just in text form but well-designed with text and pictures. Soft copies of the well-crafted messages were shared through social media.
- It was very incredible to see a well-taken video from some insurance companies wishing their customers the best in the season. Most of the videos also featured the top executives wishing the policyholders and potential policyholders the best in the seasons and also giving assurance of how they wish to continue to serve them well in the coming years. There could not be any better assurance than this. I know the public can save these videos and refer to them in the future when they are not happy with the services provided by these insurance companies.
These place insurers at a certain level and I was so much happy with these actions. The most important thing is that insurers are beginning to appreciate the power of technology and embracing innovative strategies. Technological advancement has come to stay.
Innovations have become one of the key components of corporate strategies. Innovation helps to improve upon procedures to perform better in the market and it increases brand equity and customers’ perception and this gives the company a competitive advantage. Another attribute of innovation is that it gives strategic orientation that helps to overcome the challenges they encounter while struggling to achieve a better competitive advantage (Drucker, 1985; Hitt et al., 2001; Kuratko et al., 2005).
Can insurers build on these innovative strategies exhibited during the Christmas festivity?
- Marketing through the use of social media. Insurance Companies could design short videos on products and share them. Share the features, benefits, terms, and conditions through social media to help do away with the misselling of insurance products and also increase product knowledge for the general public.
- Most people have complaints with life companies because they find it difficult to access their statements easily. Banks have created internet banking where customers can personally see and print their transaction statements and know their balance at ease. Some private pension companies have these same internet platforms where customers can monitor their investments. This could bring confidence and trust between the insurer and its customers.
- Non-life companies can also have a similar mobile application where clients can at least have access to the details of the things they are insuring without going to the insurers’ office.
- The same way insurers were able to send these messages to their customers and client during the Christmas festivity, they can replicate it every quarter or half-yearly and send the premium statement to their clients. These help build the confidence of the policyholders. It also helps to determine and correct any irregularities in premium deductions and payment.
- Most companies still have problems in giving out policy documents to their clients easily. People take insurance policies and it takes months before their policy documents are given. Insurance companies should look at the most effective means to resolve this.
- Most Life Insurance Companies lapse policies when deductions fail to come during a certain period. But, the question is, what measures are in place to let the client fully aware since he/she is not solely responsible for the deductions to reach the insurance company. Insurance companies should look at a more innovative way to communicate to their policyholders to make them aware when deductions stop.
This is a new year. Insurers should begin to do new things or do old things in different but efficient and more effective ways which would help build and make the insurance industry stronger. There are different types of innovation strategies insurers can take advantage of. These include product innovation, market innovation, information communication innovation, claims payment innovation, insurance underwriting innovation, customer care innovation, cost leadership innovation, and human resource innovation. Master one to your advantage. HAPPY NEW YEAR!!!!!!
justice@jusbelriskconsult.com
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