Robert Burr, Chief Executive Officer, iptiQ, explores what drives trust in digital insurance and how the industry can improve through innovative solutions
Customer relationships are built on the most precious of all character traits – trust. In an increasingly tech-driven world, digital trust has become an essential aspect for every business.
By nature, digital trust is highly personal and emotional, not always responding to logical reasoning.
At a regional level for instance, one might expect those with the most exposure to new technologies to have higher levels of digital trust. However, a recent study from Swiss Re Institute reveals that the more digitally advanced a country is, their trust levels tend to be lower.
While it can be just as hard to explain rationally why different technologies are trusted more or less by those in different regions, insurers often struggle with the question of why – or why not – a digital insurance solution is trusted by customers.
However, there are methods to address these challenges systematically, and here are three such methods.
Promoting transparency in data use
From outlining cyber security measures to presenting data use and ethics policies, there’s always more that insurers can do to drive transparency in online interactions. Firms can even offer incentives for those willing to share data. For many of our customers, this will help foster trust, but not for all. Surveys point to there being many individuals not wanting to establish digital trust with insurers despite explanations and incentives.
So, how can we break down decision making and understand why, in some circumstances, certain customers may be unwilling to share data with their insurer?
Our analysis shows that part of the answer to this question lies in the speed of thought used by individuals in engaging with digital technology. The notion of being in control has considerable influence in judging the risk of sharing data.
Individual psychological profiles are a further filter through which trust is moulded; as are the cultural and environmental background of the customer.
Tapping into customers’ emotions
Gut feelings are as valid decision-making mechanisms as clear-headed reason. They are part of our journey to digital trust.
It is important for insurers to think about some of the gut feelings of their customers and how they can work around them to build digital trust. Some key questions to consider include – How do we make our customers feel in control? How do we interact with those who don’t want to share their data? Why do some trust a gamification of data; while others are repulsed? Should we approach different ages or nationalities in different ways?
Beyond the inherent and competitive nature of digital environments, there is the sheer volume of data generated, received and to be managed. These demands have given rise to increasing feelings of technology overload, together with cognitive and physical duress.
The need for better understanding of the relationships we engender through digital platforms, the factors that influence them, and the nature of trust in this space is constantly evolving. This means that, for insurers, the safety, security, and efficiency of online engagements is clear.
Keep the customer front and centre
To truly harness the potential of new data-driven technology, we must understand what customers really want from their insurance and address their needs accordingly.
To efficiently drive results, a true understanding of expectations, behaviours and actions is vital.
Of course, garnering the insights is one thing. Translating and employing them to create meaningful experiences that lead to improvements in customer outcomes across sales, satisfaction and retention is another. The aim should be to leverage technology to build relationships based on trust and make every aspect of insurance as effective as humanly possible.
However, we cannot embark on this alone. We need digital trust to take our partners and customers with us. While many will be immediately receptive to the journey, we also need to engage and support those who think differently.
True – the human decision-making process can probably never be fully captured. Still, I firmly believe the insurance industry can benefit from a better understanding of gut feelings and systematically responding to customer needs based on our findings.
Source: IptiQ
