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The Insurer Marketplace in 2023

The new year is here, and with it comes a new set of opportunities and challenges for the insurer marketplace. At the end of 2022, we surveyed our readers on what they see to be the top industry challenges, biggest opportunities and areas of focus for 2023. The results show some key themes and priorities including automation and cyber security, talent retention and regulatory compliance.

Dimitri Honos, Senior Business Development Manager – Gallagher Bassett Australia, sat down to discuss the findings and explore how Insurers can set themselves up for success in 2023.

Q1. One of the greatest opportunities insurers see for their business in 2023 is sustainability and customer retention. What are some important tips insurers should know when looking to attract and retain customers and be more sustainable?

For attracting new customers, emphasizing digital capabilities should be a high priority. Customers today want the ability to manage their insurance policies online, including purchasing policies, making payments, and filing claims. The convenience and flexibility of online services can also reduce administrative costs and improve operational efficiency, resulting in more sustainable pricing.

Excellent customer service is a key retention driver. Exceptional customer service builds trust and encourages our customers to stay. Offering customised insurance products also allows us to meet the unique needs of our customers, providing us with a competitive advantage and ultimately improving our retention.

Offering competitive pricing is always a benefit, however, it should never jeopardise long term sustainability. This requires a careful balance between risk assessment, pricing, and customer retention strategies.

Q2. One of the biggest challenges facing insurers today is retaining staff and accessing top talent. What can insurers do to combat the battle for talent, and help put them a step ahead of their competitors?

Insurers need to offer competitive compensation and benefits packages to attract and retain talent. This not only includes salary but also benefits such as group and health insurance. It is also worthwhile developing long-term, multi-year KPIs that are attached to bonus schemes/vested equity programs that encourage staff tenure.

Talented staff want to learn and grow in their careers. It’s important for insurers to offer ongoing training and development opportunities, such as seminars, webinars, and mentoring programs, to help employees stay up-to-date on industry trends and develop new skills.

A positive workplace culture is essential for attracting and retaining talent. This includes creating a welcoming environment, open communication, and feedback channels, promoting work-life balance, and performance rewards for innovation and creativity.

Q3. It’s no surprise that the insurance marketplace has noticed the expectations of its customers changing. The main area of change being felt is that customers expect a deeper understanding of risk by sector and size. What can insurers do to address this?

Insurers need to invest in data and analytic capabilities to better understand risk by sector and size. By analyzing data from multiple sources, such as internal data, third-party data, and social media, insurers can gain insights into specific industry sectors and assess risks more accurately.

Insurers should continue to further develop industry-specific insurance products that are tailored to the needs of specific sectors. Insurers also need to better engage with industry associations and other groups to gain a deeper understanding of the risks faced by specific sectors and gain insights into emerging trends and risks.

Another key to gaining a deeper understanding of the demographic risk profile, is strong customer relationships (KYC), as this will allow for the development of bespoke products and services.

Q4. With continued growth in the insurer industry, superior service and claimant experience continue to be critical to success. What can insurers do to enhance this?

Insurers can benefit by better developing a culture of empathy by encouraging employees to place themselves in the policyholder’s shoes and truly understand their needs and concerns. This allows them to build trust with customers and create a positive brand image.

Another point is to streamline the claims experience by simplifying the claims submission process and improving communication with policyholders throughout the journey. Insurers have a real opportunity to generate efficiencies by partnering with a third-party administrator, so they can focus on their core function of underwriting risk.

Insurers also need further development of digital capabilities, such as online self-service portals and mobile apps, allowing customers to manage their policies, submit claims, and receive updates on their claims. Again, this is a major benefit of using a specialised third-party administrator.

Q5. The biggest focus area respondents wanted to learn more about was simplification and cost optimisation. What are some tools or resources insurers can use or implement to better improve these areas?

Insurers should actively be gathering customer feedback through surveys and focus groups to identify pain points and areas for improvement.

Insurers can provide digital self-service portals that allow customers to manage their policies, make payments, and submit claims online. By offering these services, insurers can simplify the process for customers and reduce costs associated with manual processing.

Insurers can also use big data analytics to gain insights into customer behaviour and preferences, identify emerging trends and cost savings.

Contact our team today and explore how partnering with Gallagher Bassett can help set you up for success in 2023.

Dimitri Honos

Senior Business Development Manager - Agencies and Underwriters

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