Why African Insurers Need To Go?Digital

Africa has had an insurance industry for many years, even though it hasn't been very big. Most Africans still think of insurance as a luxury, so they don't have any.

Only 2% of people in Nigeria, for example, have any kind of insurance. Access and ease of use are at the top of the list of reasons why the rate is so low. And that's about to change with digital insurance.

Every day, millions of Africans use the internet to get a wide range of services. They use their phones, tablets, and computers to shop, order food, call cabs, do their banking, and so much more.

There has never been a better time for insurance companies to reach out to Africa's digitally savvy consumers. To do this, insurers need to be able to make a seamless, fully digital experience.

Building for modern insurance consumers

Consumers today expect to be able to buy insurance and manage it from their phones.

They need a trusted advisor who can help them navigate, predict, and get rid of everyday risks, not just an insurance agent who shows up when it's time to renew their policy.

They want an insurance policy that takes into account how they live and gives them personalised advice and quotes based on information from their smartwatch, car, and other connected devices.

In an emergency, they should be able to settle their claims quickly by sending photos, videos, and any other relevant information.

The relationship between insurers and clients has come full circle. In the past, most people had to choose from the few options that insurers gave them. Today, they have too many options and can switch providers in a flash.

Customers in the 21st century aren't impossible to please. In fact, they are clear and loud about what they want. They want speed, options, customization, control.

If all of these things can be done on your digital insurance platform, whether it's your website or a mobile app, you're already ahead of the competition.

Users want to be able to

1. View, compare, buy, and manage all their insurance plans on an app.
2. Get registered and authenticated, quickly and securely.
3. Submit claims and get full visibility.
4. Describe an incident quickly by submitting pictures and videos taken with their mobile phones.
5. Add their cards or e-wallets, and renew their insurance with an auto-payment option.
6. Access their digital insurance card and easily review all their policies on the go.
7. Share their location in the case of an emergency and get quick help from emergency services.
8. Ask questions and make complaints by chatting with a bot or speaking to a live agent.
9. Get notified about upcoming payments, pending documents, and claims status updates.
10. Access interactive content that helps them become smarter and more responsible policy holders.

This kind of experience not only makes the lives of consumers easier, but it also makes them want to come back for more. And for insurers to accomplish this, they need to create an experience that fits their needs and expectations.

Insurers also have a lot to gain

Digital insurance is great for more than just consumers. Insurers know how important it is to be on the cutting edge of their industry. Customers want to know that their insurance provider is using the latest tools and technologies to give them the best service possible.

The easiest way to prove that is to offer digital insurance solutions to consumers, and the benefits are clear:

1. Meeting and exceeding customer expectations

Consumers today expect everything to be instantaneous, when and where they need it. Whether it’s service, payment, or communication, insurers must have the infrastructure to meet consumers where they are.

Digital insurance makes that possible - with features like self-service, live chat, and insurance apps making core insurance functions like claims and billing almost automatic.

2. Smarter decisions with data

With digital insurance solutions, insurers can gather richer and more meaningful data. By combining better data and powerful analytics, insurers can conduct thorough background checks and make better business decisions.

3. Fraud detection

The greatest benefit of digital insurance applications is the sheer volume of data that they generate. This data helps insurance companies do their jobs better, and it also helps stop fraud.

Customer relationship management software can be used to look through customers' social profiles for any activity related to a claim, and predictive analytics can help find patterns in customer behavior that could be a sign of fraud.

Cost reduction

It has been shown that going digital can save a lot of money. Big data, AI, and predictive analytics help insurers with more accurate underwriting, which saves them a lot of money. It also makes it faster for new products to reach the market.

Getting ahead, going digital

There is a big difference in the capabilities of digital insurers compared to those that are not leveraging technology. Many get intimidated by a misconception that going digital will be a much larger effort than they’re prepared for.

However, digital insurance is feasible and accessible to insurers who turn to a software as a service (SaaS) model for their core systems.

SaaS-based digital insurance is scalable, ever-ready and continuously updated to make sure insurers are operating with the latest systems. These capabilities allow insurers to quickly update and take advantage of the functionalities that digital insurance offers.