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How Insurance companies can orchestrate the best User Journeys with CIAM

Mithun Singh
October 13, 2020 at 9:41 AM

User Journey Orchestration is ultimately about delivering great user experiences. Whatever form that takes at your business, it requires connecting channels and customising the user experience based on target audience, brand and level of trust required for insurance companies.

Over the past 5 years, the insurance market has been flooded with a number of aggregators providing product & price comparison off the shelf, eventually almost replacing the need for an intermediary agent or broker to sell insurance products. Not to mention the digital push visible in the buying patterns of consumers driven by the technological advancement, mainly in the mobile space. This puts significant pressure on insurers’ pricing margins. Insurance companies are finding it more difficult than ever to compete on just price for selling new products and retaining existing customers thus making the importance of a frictionless user journey all the more valuable.

The majority of the users are now comfortable evaluating options using an aggregator and buying a product digitally, without the need to deal with a broker or agent to buy an insurance product. Thus, more than pricing, it's the digital journey that has become a deal breaker for converting prospects into customers.

Easy customer onboarding

Identification Process

How do we identify someone sitting behind a computer or a phone and how are we absolutely  sure that this person is who he or she claims to be? This is an old question we have been trying to answer and improve upon over the past couple of years. In recent times, cyber-attacks in the insurance sector has exponentially grown as insurance companies are migrating towards digitalisation for better customer experience and broader offerings. Thus, identification processes need to be evidence rich and beyond any doubt while at the same time, hassle free for the customer.

This can be tackled by utilising digital identity verification systems (like eIDAS/eID) built by governments or by commercially available equivalents provided by companies. For example FranceConnect (France), Verimi (Germany), iDIN or eHerkenning (Netherlands), itsme (Belgium), BankID (Sweden), Gov.UK Verify (UK) and many more. This makes the identification process for the consumer a walk in the park, as they can re-use an existing, trusted and known single online identity to identify themselves, rather than dealing with the inconvenience of having to go down the manually evaluated offline process, while still establishing a very high degree of trust on the identification performed. So it is a no-brainer that for any insurance company, it is essential to be able to integrate with any of these different authentication systems used in Europe. Last counting, there are more than 35 eIDAS nodes which have successfully passed the conformance test of the EU and that number is growing rapidly.  

If this didn’t already throw you into a calculation mode, on how much effort, money and time will be needed to implement this - mind you this is absolutely needed for survival - I am sure the next point definitely would.

Since a lot of insurance companies date back hundreds of years of existence, they typically have a lot of customers that exist in legacy systems i.e. without any digital footprint and paper records only. Another big question troubling the insurance industry is how to get these customers on the digital bus which is not an easy task considering these are hundreds of thousands, so doing it manually is going to take forever. To be able to bring these customers in the digital world, just establishing their identity is not sufficient, matching those identities against the information available in-house and therefore identify the customer in the context of policy holder is very critical too. Hence this is also something that the insurance companies need to have in place.

In a world full of questions, luckily, there are also a lot of answers. What if the insurance companies don’t have to do this on their own? What if they can partner with another company, who does this for their bread & butter and has the right expertise? This is where we step in. iWelcome does all the work of connecting to digital identity systems (eIDAS) from different countries and different services from within insurance companies, to provide you with the answer - the answer for which you would otherwise have to implement all of this - so that you can continue focusing on your core business i.e. selling insurance products and delivering outstanding services.

Registration / Onboarding

There are plethora of choices available for the customers through multiple channels in this digital age. Naturally, insurance is a very complicated industry - large number of brands offering products for very targeted audience, many intermediaries, consolidations resulting from acquisitions and mergers. A simplified customer experience is very important if the insurer wants to achieve a higher conversion rate of prospects to customers, while retaining and building out their existing base.

As a typical insurance company operates different brands (‘labels’) for different target audiences, it is to be expected that each brand may have a, slightly, different registration process tailored to the target audience of the brand. For instance, a brand providing car insurance to young adults may have a just-in-time registration process that progressively collects needed data where a brand targeting pension insurance requires a stricter process including identity validation and multi factor authentication capabilities. These so-called onboarding processes always require a good discussion since there are multiple points of interest in the process. On one hand the onboarding and registration process need to be smooth, providing a great customer experience. On the other hand, there’s an urgency for the right level of security. Combining these two aspects might seem challenging, especially when you deal with multiple brands and different ingress points. To manage this, a flexible registration flow is essential. And not only flexible upon configuration, but flexible at all times, so the customer journey can be optimised based on real-time analytics. With iWelcome’s Customer Journey Orchestration (also for mobile apps), customers can orchestrate every step in the process to reach an optimal customer experience.

An insurance company, on average, sells more than 6 products. Broadly classified in health insurance & non-health insurances like Motor, Fire, Liability, Legal, Income, Savings etc. all under the name of different brands. As per a report from McKinsey -  branding is a very effective way of increasing sales, as the marketing can be group focussed, continuous reinforcement of brand awareness is easy, halo effect for promotion of brands, more customer touch points strengthen the brand awareness and increase the chances for repurchase. So, the concept of branding is here to stay.

Loyalty as an attribute is eroding from consumer purchase behaviour, so gone are the days when the insurers could bet on consumers to purchase all the required products from the same company. Consumers in today’s digital age do not shy away from doing à la carte i.e. choosing different products from different insurance companies, which better suit their experience & needs. Consequently, it’s very important for the insurance companies to have very customised registration/on-boarding process for each brand with varying steps to better cater to the target audience of that particular brand; one size fits all is no longer accepted

It can range from the lowest end of spectrum i.e. a just-in-time registration with only an email (and not even password) for prospect consumers, to the higher end of the spectrum with Identity validation (like iDIN), matching, mobile phone number verification for 2FA and other steps. With also the possibilities of registering a user and doing a step-up to collect more data, as and when needed. As the consumers have started buying à la carte, we offer you a buffet where each brand from within an insurance company can pick their own items/steps and orchestrate a user journey specifically targeted to their audience thereby providing a very individualised registration/onboarding process. This provides the companies with the best of both worlds - customised user experience per brand to achieve a smooth journey and higher conversion rate and yet, very generic and easy when it comes to technical complexity and maintenance. So, in essence, each step from this buffet can be used like plug & play. All this flexibility along with the possibility to have a single identity per user across brands, so that when a consumer buys a new product, they can re-use the same identity (with or without step-up if needed) and thus can use a single identity to view all the purchased products at a company - irrespective of the brand which sold it to him.

Read the whole series

This blog is part 2 of a series of 5 blogs about identity challenges in the insurance industry. You can read the insurance blog series here:

  1. The best customer experience for Insurance, with CIAM
  2. How Insurance companies can orchestrate the best User Journeys with CIAM
  3. Frictionless User Interaction
  4. B2B2C for Insurance: How to serve different user groups
  5. Conversion from prospect to customer

Feel free to repost this blog on your website! But when you do so, please be so kind to mention the source and give us a notice via marketing@iwelcome.com.

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