The insurance industry has long been wrestling with ways to engage and retain customers. Like any business, insurance companies have to evolve with changing times and the way that consumers interact with one another and how they choose to interact with companies. Technology has become one of the most powerful forces in the world and insurers are having trouble adapting to this fact.
Throughout the insurance industry, companies are beginning to adopt new business strategies that are based on the use of new technology. Some of this technology has to do with claims processing and providing better services to customers, but insurers are also beginning to focus their efforts on mobile technology, embracing the fact that the consumer experience is being heavily influenced by smartphones and tablets, as well as online platforms.
Social networks, telematics, and service-oriented architectures are helping transform the insurance industry. Facebook, Twitter, and YouTube are becoming ideal ways to engage consumers, especially those using mobile devices. These platforms provide insurers with the ability to shrug off their faceless visage and become more personable entities that people can actually connect with. Telematics offer insurers a way to provide savings to their customers and provide them with usage-based policies that have become quite popular with consumers.
Social media may be one of the most powerful forces in the insurance market. Social sites have changed consumer expectations and people are interacting with businesses more frequently online. These platforms allow businesses to answer consumer questions, address complaints, and collect feedback that can improve products and services being offered. State Farm has been focusing heavily on the social aspects of these platforms, using social media to dramatically improve the customer service experience.
Insurers may have to embrace innovations in the technology field in order to continue providing valuable services to customers. For those that want to avoid technology, there is the risk of becoming obsolete as consumers begin to favor more progressive companies.
