The hybrid advice model is now a "must-have" for insurance distribution
Having led innovation and digital transformation projects inside corporate insurance companies for many years, I understand the challenges that come with change. Traditional insurers have established distribution channels, enviable customer bases, and strong brands. However, the regulatory environment, legacy technology, and bureaucratic mindsets can stifle the digital transformation needed to stay ahead of digital newcomers.
Now, as the CEO & Founder of Axell, my company works with insurers around the world supporting senior executives to realise true value from innovation projects. Distribution is a function I’m particularly passionate about and routinely the focus of Axell’s engagement with clients.
Many insurers around the world believe pivoting from physical to digital is the only way to manage operational costs and compete against digital native insurers. But this is not what the customer wants. Human capital is what differentiates the insurer in today’s faceless world. The real sweet spot lies in a hybrid of human and digital.
Hybrid distribution models that combine human and online channels is the utopic customer experience. Many have heard the expression “the right message, in the right channel, at the right time.” This is the experience customers receive in almost every other industry today. But insurance remains dominated by physical branches, call centres, paper mail and perhaps an email channel where you can expect a response in 5-7 business days.
Pivoting to a hybrid model is challenging, but it can be achieved. Leveraging data for predictive next-best actions, empowering agents with digital tools, and integrating omni-channel communications throughout the customer journey are the pillars to optimising hybrid distribution.
Also, it’s about allowing the advisor to bring their personal touch and experience managing relationships with clients to the way they do business. Not just in the traditional way of following rigid processes in a CRM but allowing them to personalise the experience they give to the client, empowered by technology.
See one of our client distribution case studies to understand how Axell adds value in guiding innovation and digital transformation projects.
See Moshe describe the future advice ecosystem
Learn more about the future advice model from Axell CEO & Founder, Moshe Tamir’s presentation at the 2021 Earnix Excelerate event. Global thought leaders in insurance, banking and analytics took to the stage to share insights, trends and their vision of the future digital transformation of their industries.