Blog

Should an Insurer Try to be More Like Google?

Joe McKendrick
Insurance Experts' Forum, May 20, 2014

There's no shortage of admiration and emulation going on for the business models of the big web companies. Go all-digital, automate decision-making with big data, engage mass markets online, support mobile and keep on innovating. Google and Facebook are held up as models of success, the corporation of the future.

Insurers need to keep blazing digital trails as well. But should they look and operate like Google?

There are important differences between Google and an insurance company. For one, Google's level of customer investment is wide, but relatively shallow. Many users take advantage of its many free services, but don't have strong financial bonds to the company. Insurance carriers, on the other hand, do have deep bonds with their customers.

Also see: Digitization is Transforming Distribution

There are many aspects of digital companies that do provide roadmaps for insurers, however. The web companies, for example, have learned to master the customer experience. As spelled out in a Harvard Business Review article from Jeanne Harris, Allan Alter, and Kelly Dempski, the Googles of the world provide important lessons in adapting the new digital realities.

Plus, many executives are starting to look at the disruptive qualities of these web properties, generating new innovations on a weekly or daily basis. IT departments, mired in legacy maintenance, need to be freed up to pursue this innovation.

They provide some guidelines for corporate and IT leaders to follow:

Iterate, iterate, iterate: Employees at the digital companies deliver innovations at a fast and furious pace. “They quickly test new services and features with actual customers and data,” Harris, Alter and Dempski report. They also look to outside ideas for innovation.

Employ analytics: It's now possible to gather data from every iteration in every corner of the organization. This is a key piece of the success of digital companies, the authors state. “When companies capture and analyze their customers’ interests, and integrate them with data from other sources, marketers and developers can better predict and influence consumer behaviors and deliver more personalized experiences.”

Reinvent the IT department: It's key that the IT department take the lead in the digital evolution, and move away from legacy systems that are slowing down innovation. “The bottom line for CIOs,” the authors state, is to “serve the accelerating demands of digital customers, IT organizations will have to behave more like Amazon or Google, and less like their traditional competitors.”

Joe McKendrick is an author, consultant, blogger and frequent INN contributor specializing in information technology.

Readers are encouraged to respond to Joe using the “Add Your Comments” box below. He can also be reached at joe@mckendrickresearch.com.

This blog was exclusively written for Insurance Networking News. It may not be reposted or reused without permission from Insurance Networking News.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

It’s Okay to Take a Breather from the Technology Maelstrom

Even in technology, good things may take time.

Customers for Life

Insurers once had a monopoly on lifetime customers, but technology has changed the game.

Smarter Tablet Use Could Transform Insurance

By reducing administrative tasks and automating paperwork, tablets can increase agents’ selling time and help them respond to customers in seconds, not hours.

Insurance Wake-Up Call: Embrace the Shared Economy Opportunities

SMA believes that insurers must embrace a "shared economy," crowdsourcing and open innovation to get ahead in the new marketplace.

The Lion and the Mouse: Start-ups Pitch to Top Insurer

Insurers should be on the lookout for innovative partnership arrangements that produce unique and valuable solutions.

Silicon Valley Ventures

A trip to area hotbed of technological innovation calls into question the potential viability of insurers' legacy systems, operations and processes.