Digital transformation hits every industry at a certain point. The insurance market is no exception to that. Technological and societal factors play a role in resetting this industry. Incumbent insurers know they have to change to keep their market share intact. Technology in general, and IAM in particular, play a key role in propelling insurance into the future.
Taking out insurance has traditionally been a slow process, with lots of paperwork, many middlemen, legalese, and small print. Although technology exists to make this process smoother and faster, insurance companies did not feel pressed to use this technology to improve customer experience. InsurTech companies, however, have changed all that. They bring differentiation to the market, for instance by offering:
- Flexible car insurance based on a pay-as-you-drive model
- Pricing relative to the driving style of the driver
- Instant point-of-sale coverage for purchases, thanks to APIs (Application Programming Interfaces) that link retailers and insurers
- Life and health insurance based on data from wearable devices
InsurTech exists thanks to the successful combination of emerging technologies such as Artificial Intelligence (AI) and the Internet of Things (IoT) and the desire of consumers for instant gratification and a personalized experience. Consumers want to take out an insurance with just a few clicks on a smartphone. And they want to do so on their own terms.
IAM plays crucial role in modernizing insurance
For traditional insurance companies, this requires a huge change in operational models, business processes and customer relationships. A change driven by the very technology that disrupted them in the first place. Among the technology building blocks that facilitate the new insurance company, Identity and Access Management (IAM) plays a key role. IAM can guarantee that the openness the modern customer demands does not compromise IT security. On top of that, TrustBuilder Identity Hub can help build digital ecosystems that deliver tailored and sophisticated products to customers and speeds time to market for new services.
Digital Ecosystems drive loyalty for insurance companies
Modern consumers are no longer interested in point solutions, they want to interact with brands that offer convenience through a large portfolio of services. Throughout the world, insurance companies are joining ecosystems to drive revenue growth and customer loyalty. Some examples:
- Insurance companies form alliances with online platforms for buying and selling used cars. From these platforms, customers can automatically select a car insurance.
- Insurances ask customers to share data from fitness trackers in exchange for discounts on insurance premiums. Through deals with fitness centers, they offer rebates on gym membership.
- Utility- and insurance companies team up to detect faults in gas boilers and alert the emergency response team of the insurer before a fire can break out.
The services of the ecosystem partners are connected through APIs. Besides providing security for these APIs (at the edge, and between services), TrustBuilder Identity Hub also supports different authentication mechanisms, thus allowing users to bring their own authentication.
Omni-channel customer experience is key in 2020
As insurance companies are switching from a broker-only model to a mixed channel operational mode, customer experience becomes a lot more relevant. Consumers want to get the same experience across all channels, using their own choice of authentication. It must be made as easy as possible to become a new customer at an insurer, and just as easy to subscribe to a new policy. Digital onboarding is becoming the norm. Besides orchestrating user access and security across integrated applications, TrustBuilder Identity Hub manages access for everyone to every system. By building the bridge between different environments, TrustBuilder Connectors allow seamless access to all users.
Speed is of the essence
Insurance companies need to bring new products to market before the competition does. New functionalities and new services that are added, need the same level of security. The open architecture of TrustBuilder Identity Hub allows of fast and cost-effective deployment, and new use cases or changes to the user journey can easily be set up in a GUI-based workflow engine. Standardized workflow configurations and out-of-the-box connections further shorten time to market.
IAM in action at Allianz Benelux
The Benelux division of global insurance leader Allianz used IAM to drive its digital transformation. TrustBuilder Identity Hub allows insurance brokers, Allianz employees and end customers to access applications and data using their authentication method of choice. Brokers use Federated authentication and SSO to seamlessly move from one application to another. Marketing and Information Security worked hand in hand, developing digital customer onboarding to enhance the user experience. Just as important: Allianz Benelux now feels ready to develop ecosystems that will turn the insurance company into a one-stop-shop for its customers.
Read the full customer story on Allianz Benelux here.
Are you interested in finding out how TrustBuilder identity Hub can accelerate your transformation too? Register for the joint Allianz/TrustBuilder on-demand webinar.