A Design Thinking Framework for Value Added Product Solutions in the Insurance Industry

DESIGNED THOUGHT 

The purpose of Design Thinking is to solve problems by practicing holistic, human-centred design. The discipline of focusing on client needs at the centre of any problem and/or opportunity, enables the creation of a positive experience for the client, whilst also solving problems and embracing often-linked opportunities.

DIFFERENTIATED BY DESIGN 

The core differentiator of design thinking is to focus on the client - but importantly - in relation to an overall goal, realistically analyzed in the always greater context of the bigger system! This systemic approach, stems from the understanding of how different parts of a system or process, are inextricably intertwined and consequently influence one another, with a knock-on impact on the greater service or deliverable.

CLIENT ALIENATION

I have observed that it is becoming more difficult for both consumers and businesses to choose insurance solutions, because of the alienating complexity of products, and the sheer volume and relentless marketing "push" of competitive offerings. In addition, insurance products are multifaceted, so that often the only aspects customers succeed in comparing are cost, brand appeal and convenience.

RISK MITIGATION WINS

The common objective of all parties involved in insurance, is the management and pricing of risk. No legitimate stakeholders in the insurance mix want claims against policies. To differentiate an offering in the industry, the ability and experience to advise clients on how to reduce risk is vital, as better prepared clients naturally mitigate a good portion of their own risk - and enjoy enhanced piece of mind, which translates into brand loyalty!

OUT OF TOUCH

The Insurance Industry is missing and neglecting natural service opportunities and touch points, with the insight to me being the urgency to better sensitize clients as to how to make optimal choices of products, to answer their unique needs. The companies who understand and address this shortfall, can eliminate the typical grudge emotion partnering insurance purchases - and create real, win-win value through trusted, loyal relationships. Sadly, the insurance industry has in my opinion, typically under-invested in professional advice and support services, when in fact there is a robust business case for enhancing benefits for clients while simultaneously reducing company costs - and driving brand loyalty. A collaborative commitment to strengthening this industry weakness, will redirect insurance expertise to where it adds the most significant value - by helping avoid and/or deal with the unexpected.

 HEALTHY CLIENT OBSESSION

An obsession with client centricity across the full insurance spectrum is healthy. Clients expect and will soon demand a holistic experience when visiting a branch or broker, phoning a call centre and interacting with a website or an app. Today’s clients have potentially instant digital access to the full spectrum of offerings across the insurance industry. It is therefore critical that their experience at every touch point is seamless. Client expectations of a "single view" have become a non-negotiable across all the different channels. And meeting these timeous and fair client expectations, requires a fundamental shift in thinking - from internal processes through the full "system" of interaction, culminating in customer satisfaction - or better still, delight! 

DIGITAL DISRUPTION

DIGITAL FIRST disruptors are entering insurance markets with radically new and effective thinking on problems solving. While disrupting the legacy ways that companies and clients interact, they are setting new standards for simplicity, personalization and interactivity.

SERVICE TRANSFORMATION 

For the traditional insurance companies to stay in the game, they need to capture new sources of value and reinvent their current client’s experiences, before it is too late. All necessary service transformation begins with clean data and analytics-based insights, about what matters to current clients and how best to satisfy their needs through innovative solutions. Some enthusiastic companies may fail to capture the full benefits of their improvement efforts, by concentrating only on optimizing individual touch points, but neglecting to understand the bigger system weaknesses, which can ultimately compromise or even cripple the service transformation initiatives and resultant customer experience. Meaningful change requires a complete, 360 degree journey that ruthlessly inter-interrogates, improves and cuts across multiple inter-linked functions and channels.

EMBEDDING POSITIVE REINVENTION

It is crucial for the insurance industry to embed every aspect of the reinvented client experience into their operations, in order for the "new improved" experience to become a sustainable brand differentiator. This rigorous requirement will require changes to all processes, and the way employees Interact with them. Enhancing the customer experience will secure the rich rewards of satisfied customers, who spend more, are loyal over time - and importantly, cost less!

I wrote recently:

“Empathy is the key to unlocking client insights pro-actively targeting their needs with game-changing products.”

Show compassion to you customers in helping to fix their problems - and ideally delight them in the process.

Loyalty enhancement companies like Global Choices create a range of source of tremendous win/win value. Find new business opportunities, and change the operating models over time. We see more digital enabled platforms emerging as the new norms in the insurance industry incorporating:

? Social Media Integration

? Internet of Things and Connected Devices

? Intuitive Risk Prevention and Telematics

? Application programming interface ecosystem

? Payment infrastructure

? Cyber Security

? Anti- money laundering and know your customer

? Artificial intelligence and machine learning

This highlights the impact of new digital entrants on products and services in the insurance industry. As a VAP company we use our evolving digital platform to maximise efficiencies in the supply chain with great customer experiences.