#ThisThursday HOW INSURERS CONTINUE KEEPING PROMISES AS CUSTOMER BEHAVIOURS CHANGE By Ekerete Ola Gam-Ikon

 #ThisThursday

HOW INSURERS CONTINUE KEEPING PROMISES AS CUSTOMER BEHAVIOURS CHANGE 

By Ekerete Ola Gam-Ikon

Many of us have continued to wonder how insurance companies succeed at what they do with so little that we pay, as premium, for such large risks that they cover!

To provide coverage against accident, death, fire, theft and third party liabilities on a vehicle worth N10m or N100m for a Comprehensive Insurance Premium of N500,000 or N5m a year, respectively, sounds incomprehensible and unbelievable to those who are yet to understand the workings of insurance. 

Sometimes, for such highly valued vehicles, the N500,000 or N5m paid as Premium may not be sufficient to fix the damaged fender or rear lights of such vehicles, not to talk about a full accident where lives are lost.

Prior to the tech era, insurers that were determined to keep their promises to us, would consider MORAL HAZARD seriously, so the character of the person or organization taking insurance was probably the biggest consideration!

Based on all the information provided by the prospective customers  (policyholders), the insurers would seek to verify and validate them. Where insurance brokers were involved, the insurers would require them to vouch for the character of the customers.

Subsequently, when any of the risks - accidents, deaths, fire, theft and third party liabilities crystallized and claims were reported, the insurers responded with confidence that there were no misgivings or hanky-panky.

Then whether due to changes in government policies or changes in customers' behaviours "from abroad", the insurers noticed changes in the information provided by prospective customers.

Falsification of information by customers meant the insurers needed persons that could decode and validate such information. 

Like other sectors, the insurance sector had to address the challenges of fake information and fraudulent trends by employing people who could identify the wrongs. This era forced the introduction of technology across the value chain.

The insurance industry needed the capabilities that it could not afford at the time and was burdened by characters that it needed to do away with.

The insurers desirous of continuing to keep their promises to us quickly started investing in technology, first in their people learning about it and later, in acquiring the equipment.

Today, with digital technology, the insurers are relying on innovative solutions that practically screen persons and organizations, their behaviours and preferences, so keeping promises are also predictive. 

Even without having the information and data of persons and organizations, you can use their behaviours and preferences, with the assistance of Artificial Intelligence to create products that meet their needs.

It gets more interesting to see how insurance can work for us, as the insurers that desire to continue keeping their promises do just that!

Let's keep looking out for them. Your next click may be an insurer that makes insurance work.

I remain...

Assuredly Yours,

Ekerete Ola Gam-Ikon

NCRIB NAC Award Winner 

+234-802-585-0344

olagamola@gmail.com

Photo Credit: Reddit