“Spanish insurance managers do not realize that they are a reference in other markets,” says the expert.
“Insureds get used to the standards of service Amazon, Glovo, Uber, Netflix and similar companies. “They expect exactly the same from their insurer and this presents a challenge for the insurance sector.”it states Miguel Moro, associate partner at Bain & Company, insurance expert.
“At Amazon, they tell you when the package will arrive very precisely, and even when the delivery person is nearby, you know how many stops they have left. You order from Glovo and they tell you the food will arrive in fifteen minutes and you will see in real time. On home insurance, you meet at 11 a.m., the repairman doesn't show up, and you don't know anything. “Customers are getting used to the services provided by technology companies and see that the same is not happening with their insurance.”says Bain & Company expert.
However, he acknowledges this “It's not easy because sometimes they work with assistance and repair companies that are outside their groupBut other sectors have solved it.”
Digitization
Digitization also represents a challenge for insurers when selling insurance policies.. “50% of customers want a fully digital or hybrid relationship with their company, where the first contact is digital, but the purchase is closed, in many cases, through the entity’s usual channels.”
Morrow points out that in this process, there are direct companies with great experience at this point, however Traditional businesses – those that use intermediaries – face the challenge of how to bring their customers into the digital world.
“If a company launches a virtual offering of its products and a customer wants to make a purchase through its traditional network, “Often, agents are not prepared to respond as quickly as necessary in the digital world.”
If in this case they are serving many customers, they may arrive late, which is the case in the world of digital sales Miss this opportunityBecause when you contact and serve a customer, they may have already contracted with the competition“, says this insurance expert.
“Artificial intelligence (AI) can make insurers more efficient internally, generating reports and doing summaries on a daily basis…, but Traditional AI doesn't work well. “It's built on pre-defined questions, and if you ask other things it fails, but the generative question doesn't fail.”
Bain & Company expert says so “All insurance companies do some of thisSome have more advertising than they already have and some don't advertise and have solid stuff.
With the experience and perspective of a global consulting firm like Bain & Company, Morrow confirms this The Spanish insurance sector is one of the most advanced in the world. “At Bain, every time someone in another market has a challenge with a customer, one of the things they do is ask if anyone has faced that challenge before and knows how to solve it. Well, for the most part, those Those of us who raise your hands are Spaniards When we made global comparisons, we find that Spanish insurance is very advanced in all branches, however, Spanish managers do not always realize that it is a reference for other markets.
More states that It is difficult to grow in the Spanish insurance sector without a presence in health insurance and bancassuranceThe sectors that drive the most progress of this market.
Bancassurance
in life, Nearly 70% of business is routed through banksTherefore, “if you do not have bank insurance, obtaining the share of the relevant leader is a practically impossible task.” In non-life, the bancassurance share is 15%, so it is not necessary to be a leader.
He adds that the channel has achieved the greatest growth in recent years.
Moreau believes that “in absolute terms, It can be said that banks get more value from bancassurance alliancesbecause in addition to a portion of the insurance business, you receive commissions, which generally represent a greater value than the insurance business.
Accidents, life risks and deaths, the most profitable
Accident, life and fatality risks are the most profitable lines among those that pay out more than $1,000 million annually, says Bain & Company partner. The average combined ratio is around 70% of premiums, which means that for every €100 they earn in premiums they make a profit of 30%. “Accidents fit very well among the self-employed to cover temporary or permanent disability, which is why banks sell them so well.” However, he adds that selling this coverage has its difficulties: “You have to raise many stones until you discover a stone that contains reward and danger to life.” [ligado en muchas ocasiones hipotecas o fallecimiento] “It has a similar dynamic: You don't buy, you sell.”
Morrow advocates that insurance brokerage commissions can be high if expenses and policy incident rates are low and warns that “there is a trend that could be troubling, which is the concentration that is occurring among insurance brokers, because it can put upward pressure on commissions.”
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