Jacques Erasmus | Digital transformation and long-term insurance: Navigating trust in the modern world
In a digitally transformed world, trust is becoming an increasingly valuable commodity. This is especially true when it comes to long-term insurance. Consumers need to feel confident that their insurance provider will be there for them in the long run, but in a world where data breaches and cyber-attacks are becoming more common, trust can be hard to come by.
Long-term insurance, such as life insurance and disability insurance, is an essential part of financial planning. It provides a safety net for individuals and families in the event of unexpected events like illness, injury, or death. However, the nature of long-term insurance means that it requires a significant amount of trust between the consumer and the insurance provider. Consumers need to trust that their provider will be there for them when they need it most, and that their policies will deliver the promised benefits.
In a digitally transformed world, this trust can be hard to establish and maintain. As more and more personal data is collected and stored online, consumers are understandably concerned about the security of their information. Data breaches can result in sensitive personal information, including medical records and financial information, falling into the wrong hands. This can not only put individuals at risk of identity theft and financial fraud, but it can also erode trust in the companies that are responsible for protecting that information.
However, it's not just data breaches that can erode trust in insurance providers. The rapid pace of technological change can also make it difficult for consumers to feel confident that their policies will deliver the promised benefits. For example, advances in medical technology and treatments mean that individuals with certain medical conditions may now be able to live longer, healthier lives than they could have in the past. This can raise questions about whether insurance policies are keeping up with these changes, and whether they will continue to provide the necessary protection for policyholders in the future.
So, what can insurance providers do to build and maintain trust in a digitally transformed world? Firstly, they need to take cybersecurity seriously. They must invest in robust cybersecurity measures to protect the personal data of their policyholders. This includes not only investing in the latest technology, but also training staff on best practices for data security and regularly testing their systems for vulnerabilities.
Secondly, insurance providers must be transparent about their policies and benefits. They need to provide clear and comprehensive information to policyholders about what is covered and what is not. They must also be upfront about any changes to policies or benefits that may occur in the future, and how these changes will be communicated to policyholders.
Thirdly, insurance providers must be proactive in keeping up with technological changes and advances in medical treatments. They must work closely with medical professionals and other experts to ensure that their policies continue to provide the necessary protection for policyholders in a rapidly changing world.
Finally, insurance providers must be willing to listen to their policyholders and respond to their concerns. They must have robust customer service systems in place that allow policyholders to voice their concerns and receive prompt, helpful responses. They must also be transparent about any complaints or issues that arise and take steps to address them in a timely and effective manner.
In conclusion, trust is a critical component of long-term insurance. In a digitally transformed world, where data breaches and technological changes are becoming more common, insurance providers must work harder than ever to build and maintain this trust. They must invest in cybersecurity, be transparent about their policies and benefits, keep up with technological changes, and be responsive to the concerns of their policyholders. By doing so, they can ensure that their policyholders feel confident and secure in their long-term insurance policies, and that they can provide the necessary protection for individuals and families in the event of unexpected events.
*Jacques Erasmus is Senior Executive Manager at Assupol Life.