April 24, 2018 09:45
Photo : Freepik
The financial advisors are constantly repeating that they have to change their business model. However, this is not the technological innovation that will die, but their inability to properly serve consumers, according to Charlie Conron.
Mr. Conron was one of the experts invited to the second edition of Insurtech Quebec. He founded Life Design Analysis Software in 2014, a platform that helps insurance advisors to people in order to better sell their products online. A mechanical engineer by training, he claims to have learned all of the insurance through his father-in-law, who has a half-century of experience in the field.
Charlie Conron shows examples of industries that have been disrupted by the irruption of new players in the digital market. By launching iTunes, Apple has not killed the music industry : it has itself contributed to its loss by forcing the consumers to buy high price of a full album when they only were interested in one song only to success, » he says.
Uber did not kill the taxi industry : the control of prices and the limitation of the number of permits has made the service difficult to access and too expensive, » he continues. Netflix did not die Blockbuster : the former giant of the rental of movies has lost all credibility with consumers by imposing a high fee when they brought their films late in to the shop, he says.
Finally, said Mr Conron, Amazon has not killed the local retailers, but these have been gradually abandoned to force to offer a poor customer service.
According to him, this is the key to the success of a disruptive innovation. The fact of neglecting the importance of the customer experience is the biggest risk that confronts any company, » he said.
Tesla has not revolutionized the auto industry. The manufacturer does not make any promotion, but this does not prevent the customers to register on a waiting list very long before you can take possession of their vehicle. «Why ? Because of the customer experience, ease of purchase, and the product itself, » he says.
It is impossible to predict what will be the next innovation rapid technological advances. «If I told you, five years ago, the consumer goods would one day be delivered by drones, you would not believe «, lance-t-il.
Therefore, one cannot predict what will be the impact of artificial intelligence in auto insurance or the speed at which autonomous vehicles will be marketed, » he continues.
The technical means are now in so that the advisor may know a lot about the consumers and their needs, and the phone can now be used to conclude the agreements, and not to attempt to submit proposals, said Mr Conron.
According to a survey of users of the platform LinkedIn, 77 % of people say they don’t want to talk to a representative of the company if they do not know the brand. In commercial transactions between businesses, 62 % of LinkedIn users say they see the profile of the other party to the transaction.
The command line
The technology is not sufficient to create the rupture of the market, » says Charlie Conron. More simply, consumers express themselves differently to their needs because the technology gives them that. This is the case for the customers of Pizza Hut, who can choose all the ingredients of their pizza and oversee its preparation, its cooking and its delivery through their phone.
«Is it that you consider that the chain restaurants Pizza Hut is a technology firm ? «, he asks. The question is not far-fetched, since 46 % of the deliveries and orders at the counter are from an order made from the website or a mobile application, he says. This represents annual sales of US $ 1.2 billion.
It quotes the vice-president of technology at Pizza Hut, Baron Concord, which states : «many people think that Uber has transformed the industry of transportation of persons, but rather, I think they first really upset about the whole business. «
As a result, financial advisers do not have much choice, takes Charlie Conron : they must both be of the insurance vendors and contractors-quality digital. «You need to change, or at least find the partner that will help you do it, because your customers have evolved. Their needs will change because the customer experience of all other areas is not the same, » he says.
Consumers now want to control their interactions with the merchant. The technology allows you to accelerate the transaction process, which requires insurance representatives to demonstrate transparency, » says Mr. Conron.
In a survey of 1000 customers of Amazon, some 38 % say they have more confidence in the ability of the online retailer to better manage their financial needs as banking institutions.
Many tools already exist to support the work of the representatives, and among those who use them the most, are the best sellers, says Charlie Conron. Admittedly, consumers are always in need of council, but they are ready to do a good part of the research by themselves.
As a result, financial advisors need to become digital entrepreneurs if they want to reach consumers where they are, » he says. According to a survey from LIMRA, 85 % of respondents say they use the Internet before you purchase a life insurance policy.
«We do need better underwriting tools. The client does not understand its operation, especially when it receives a renewal of his police T-10 a few months prior to its maturity date, where the insurer announced a substantial increase in the premium, without further explanation «, he says.
The insurer and intermediaries are required to provide more information to the customer. «The insurance it sells, it can’t be bought. It is a maxim that we often hear. But I’m not agree at all with this. If 85 % of consumers do research on the web before buying a policy, they are already buyers, they want the product. We need to create the ecosystem that encourages its implementation in the market, » he concludes.