In the second part of our article “Challenges and opportunities for Insurance Carriers in the Post-Covid 19 Era”, we will continue to explore one of the most important changes that has forced the transformation of almost all service industries: the demand of 100% digital solutions at all points of contact with consumers.
The digital transformation of consumers worldwide has imposed new demands on many industries and insurance companies are no exception. People today have another level of appropriation and understanding of technology and because of that, they want to make any transaction, purchase or consultation, 100% online.
If the global e-commerce sales grew at rates of 4% during 2019 this figure reached 51% in 2021, one year post pandemic.
The 3 countries that dominate the e-commerce industry are still the United States, China and Japan. According to the America’s Market Intelligence, 50-60 million Latin Americans experimented with digital commerce for the first time in 2020. “Though some purchases (like groceries, medicines, and clothing) will return en masse to traditional retail as the pandemic subsides, Latin America’s new digital consumers will continue buying online products that are a little harder to find in retail (books, niche clothing, sporting goods, computers) as well as those must have products and services that are unavailable with cash”, states the report.
E-commerce post Coronavirus
The lockdown forced traditional consumers to look for online shopping options. While many initially turned to digital transactions because they had no other option, today there are many who even prefer them. The post Covid-19 consumers, regardless of age or level of digital literacy, now understand perfectly how online platforms work and appreciate the advantages of making a purchase from the comfort of their smartphones or computers.
With the pandemic, the percentage of people who had to shop online increased by 37% while 25% made an online purchase for the first time.
The product’s availability, shipping times and the payment systems were the principal sources of frustration during this period.
So what do consumers expect today from the companies they interact with?
- Excellent customer service.
- Detailed information and reviews of the products or services that they’re buying.
- Security on the transactions.
- To buy where they want, whenever they want and at the time they want.
- Comfort. No more waiting or shopping lines.
These requirements are not only for retail or telecommunication companies. They are for all industries and insurance companies are no exception.
Digitalization, which used to seem like a “plus” to increase productivity and profits, has now become a “must” for insurance companies to survive and be competitive in the face of increasingly demanding customers.
Then… what do people demand today from their insurance companies?
- An omnichannel communication.
- 24/7 attention.
- Policies customized for their needs.
- Notifications from their settlement process.
- Self-consultations options and purchase of services.
- An online and automated claims system.
The pandemic, with all its negative consequences, made possible the acceleration of the digital transformation processes worldwide. Companies had to adapt if they wanted to continue on their business.
Nevertheless, there’s a lot of room to improve to cover all the requirements of this new consumers.
In the case of the carriers, they have to considerate friendly platforms that are easy to use, products and services adapted to the real needs of their clients, security in all the payment transactions and an excellent customer service.
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