Robert Burr, CEO Asia Pacific of iptiQ, part of the Swiss Re Group’s global strategy to make the world more resilient.
In service industries, many are bound by The Unattainable Triangle. You might even be operating within its three vertices and not know it: quality, speed and price—often better known as “good, fast and cheap.” The Unattainable Triangle decrees that, of these three, our partners and customers can only choose two. For digital insurance, the pillars we pivot around are a little different: quality, speed and scale.
In the digital realm, we’re all enabled to achieve scale at great speed. Quantity comes quickly. But how do we sustain this growth and move quickly—not just from quantity to quality but to quantity and quality?
The Necessity Of Trust
Sustainable growth and quality are not mutually exclusive. They depend on each other, and they also depend on trust—trust in the security and consistency of customer experiences and in the value of our partnerships. To realize the potential of digital, we must foster, nurture and build digital trust.
Digital trust exists in every sphere of operations. The high volume of interactions at consumer levels means it is often discussed in that context. Trust in B2B, however, is also critical and must be built at the earliest stages of partnership and collaboration. It filters down through every layer of customer relations.
Reliability, Security and Reassurance
There are three zones to build digital trust in insurance according to “Decoding Digital Trust,” a recent research published by the Swiss Re Institute. It begins with reliability: No one can establish digital relationships if they do not have consistent, reliable data and internet access. Related to this are cultural and generational attitudes—age and other societal factors—that influence the customer’s willingness to trust the platform. Next is security: Do users trust the platform to share personal data? Is their data only used for purposes to which they have given consent?
Reassurance sits atop it all, fueled by AI and automated decision-making—both empathetic and social—and augmented with human interaction at the appropriate time and place.
We cannot look at B2B and B2C as separate entities. They are intrinsically linked and part of one fluid, evolving entity. B2B2C is a complete ecosystem built and reliant upon digital trust. As members of that community, our thoughts must turn to how that is facilitated and fostered across the ecosystem.
To harvest the full power of data—ethically, fairly, transparently—we must mitigate risks and disadvantages and enable more personalized, value-added services. These will promulgate and promote digital trust. Take Telematics auto insurance as an example: Data is gathered via a program customers can enroll in to track current driving habits, and discounts are given for good behavior on the road. This shows how data is used fairly to provide personalized solutions. Solutions will become more resilient, attaining greater scalability and sustainability more quickly.
Rigorous standards of governance, too, are crucial to the cultivation of trust in the digital realm. A great example of this is the Digital Trust Label launched in 2021. The label is a first-ever hallmark of digital responsibility: It measures the trustworthiness of a digital service, similar to a certified organic label you see on food products.
Scalable solutions that can be plugged into the platforms of our partners, allowing customized plans to be acquired quickly, will make for simple and ubiquitous experiences. Trusted self-service and agent-assisted models or bespoke hybrids will meet the consumer need for ease of purchase and flexible, tailored offerings with personalized pricing.
That’s what’s next for digital. If we build trust, customers will come.