At a time when consumers have increased their digital interactions exponentially and embraced technology like never before, 5G networks have sparked both their curiosity and anticipation.
In the insurance industry, the demand for leveraging this new technology has forged a new path for improving customer experiences. The emergence of 5G technologies is poised to bring a new dimension to the insurance business architecture and its digital capabilities.
For life insurance, this can be a real game changer. Until recently, there were very few ways to explain insurance product offerings except through in-person discussions. In a way, the pandemic made it easier and more comfortable for agent-client discussions to be held remotely. 5G will allow more such improvements as the opportunities are many.
The 4G era opened newer avenues of data availability, which companies used to provide intelligent marketing and advisory materials based on information from multiple sources.
These data sources included social media, search engines, and shopping history, to name a few. The 5G era is the end-user’s turn to benefit from the real-time availability of data. Marketing materials reflect analytics and insights in real time – beyond facts and data points – to allow prospects to make informed and expedited decisions. The ability to manipulate the coverage and benefits of insurance and investment plans in real time allows agents and advisors to deliver a highly customized set of product offerings, resulting in a more comprehensive and holistic view of a client’s financial plan.
One of the primary causes of prospects dropping off after the initial underwriting is the deviation of the benefits and costs shown in the illustration when compared to the actual policy premiums.
For years, insurers lacked the ability to illustrate based on large actuarial data sets, which are necessary to get the illustrations closer to final underwriting numbers. With 5G, the ability to access large data pools will enhance the opportunity for fast-tracked underwriting and, at the same time, instill trust and confidence in prospects with the offered illustrations.
Innovation in policy servicing
Policy servicing requires the ability to exchange enormous amounts of information in real time.
This opens plenty of opportunities for innovators across the entire customer engagement and experience value chain. For example, improvements in video conferencing quality enhance the relationship between customers and call center representatives. This is critical for serving high-net-worth individuals (HNWIs). Additionally, the expedited illustration of changes to existing policies – which includes the attendant premium impact – leads to better sales closure on new coverages and features.
The benefits for payment and claim processing, although seen as endpoints in customer interaction, present additional opportunities for enhancing the insurer-customer relationship and improving overall customer satisfaction. The role of 5G here is expected to accelerate claim payments, enable immediate access to supporting information, or facilitate face-to-face customer service interactions.