Even in what has long been considered a conservative industry, quite a few forward-thinking players are experimenting with different business models. Insurance companies across the world are rolling out a broad array of digital alternatives as they become part of the mass Digital Marketing Insurance revolution that is taking place. Everything is changing, from in-vehicle telematics that help monitor and report driver risk better, to the use of social media websites to improve brand building, to the many mobile applications that help agents create scenarios for prospective customers.
Most insurance agency executives recognize that they’re on the threshold of a once-in-a-lifetime opportunity to both, reduce costs, and foster new streams of profitable revenue growth since customers now routinely use the Internet to inform, compare, buy and interact with service providers.
Not everyone is on board just yet
As it turns out, it would be a bit premature to sing the praises of the industry’s digital conversion at this time. To date, many insurers are still reliant on a legacy of this information technology (IT) system using a traditional mindset. While some of the insurance social media websites have attracted significant user attention there still seems reluctance by many consumers to buy products and services online. Still, pioneers of the trade have gained a slight foothold among technologically savvy customers seeking alternative, lower-cost models for some products. And even Google has fully entered the game.
Many insurance executives have yet to embrace the digital model, seeing it as merely an IT topic and nothing more than a social media play or a onetime conversion that won’t last. However, it should be pointed out that while it continues to be an ongoing challenge to many, it’s simply going to require a significant shift in both capabilities and mindset. It will no doubt eventually lead to a fundamentally different business model for all insurers.
Success in the Digital Marketing Insurance arena will require a comprehensive approach, one that engages customers, both online and off-line, and piques their interests along with meeting their individual needs. With the balance of power shifting to customers as a result of the rapid adoption of smart mobile devices, and the proliferation of social media, the ability to master the digital space becomes evidently more pressing for insurers. The future truly is now!