A little while ago, I had the pleasure of attending America’s Health Insurance Plan’s (AHIP) annual Institute and Expo 2019 in Nashville. Throughout my time there, I attended various sessions focused on members taking control of their personal health journeys, and how technology such as artificial intelligence (AI) can help them do it.
So far in 2019, a few key trends have been leading the way in the digital health space. When you examine these trends across the board, the majority have a common theme: Improving Patient and Member Outcomes.
In a previous blog, Appian revealed the importance of FinTech partnerships. However, financial institutions also need to be aware of the competitive threat posed by digital leaders, such as Google, Alibaba, Facebook and Amazon.
Financial institutions’ path to digital dominance lies in their data
In the past few years, we’ve seen exponential growth in the availability of information. The amount of meaningful data created and the computing power available to process and store that data has consistently increased. By 2020, about 1.7 megabytes of new information for every human being on the planet will be created per second. Yet, some researchers suggest that less than 0.5% of all data is ever analyzed and used. In today’s competitive environment, financial services institutions must be hyper-focused on retaining their existing customers, and continually growing their customer base. This requires reliable insight into customer trends as well as historical data.
“The most startling truth is we don’t even think our way to logical solutions. We feel our way to reason. Emotions are the substrate, the base layer of neural circuitry underpinning even rational deliberation. Emotions don’t hinder decisions. They constitute the foundation on which they’re made!” – Douglas Van Praet
Don’t Build Financial Services Products — Build Connections with Customers
Financial services institutions thrive when they can acquire new customers and retain those that they already have — simple, right?
Simple, if financial institutions remain aware that their customers are human, and human decisions and behaviors are driven by instinct and emotion. Every successful company today must focus on building emotional connections with customers, not on selling more products. When financial institutions lead with a product or service and then try to find as many customers as possible to buy it, they are missing the mark.
The insurance industry is undergoing forcible change. Technology continues to drive business into digital channels, customer expectations increase, and InsurTechs enter the market. To avoid losing equity in prior technology capital investments - and to support the creation of digital insurance environments - insurers’ systems and IT architecture must be modernized, and their disparate systems and data sources integrated.
Historically, the insurance industry has had a reputation of being hesitant to adopt new digital technologies and processes. Until recently, most insurers were able to change slowly and still remain competitive – this is no longer the case.
While insurers have extended some measure of digital capability through portals, there is a growing realization that it’s not enough. More effort is required to address the need to integrate digital capabilities with core business operations. Given the current pace of change, the reality is that technology and business models are continuing to evolve and challenge the status quo. Insurers are now understanding that unless they leverage digital methods – inside and out, they risk becoming noncompetitive and potentially irrelevant in the market.