Over the past few years, the insurance industry has shown incredible resilience and agility in overcoming the obstacles brought forth by the onslaughter of the pandemic and the global economic fallout from the Russia-Ukraine conflict.
The B2B insurance industry has consistently been on the technological forefront and responding to many top tech trends to stay ahead of the curve. This has helped the insurance sector prepare for emerging challenges and acquire future growth momentum. According to research by Accenture, 67% of insurers believe that the B2B insurance market will change for the better in the next five years with newer technology and advanced marketing strategies.
This article will discuss the B2B insurance market trends that insurers are adopting to sustain and grow in the upcoming years.
1. Applying AI
AI has been scaling across multiple sectors and is yet to unleash its full potential in many industries. Insurers realize the benefits of Artificial Intelligence to the B2B insurance market. In the next few years, AI can be expected to have optimized most of the functions in the insurance industry.
A study by McKinsey estimated that AI could drive the annual value of the insurance industry to a whopping $1.1 trillion. With artificial intelligence, insurers can expect increased ROI and streamlined workflows, harboring productivity and improving customer experience.
With applied artificial intelligence, B2B insurers can gain insights from customer data and create personalized services that meet unique client needs. Moreover, insurers can use Artificial Intelligence for underwriting and claims management tasks, making these operations devoid of human error and more efficient.
B2B clients expect elite services where they do not have to wait for days to get an update on renewals or have their executives stay on the line for hours to speak to an agent. By enabling advanced AI chatbots, insurers can understand customer trends and talk to them accordingly, help customers with relevant information from their database and streamline the entire communication process.
The data that insurance companies accrue can also be processed effectively through core algorithms using machine learning and deep learning. ML algorithms can run the data, discover important insights and provide faster settlements to clients.
There are numerous aspects in the B2B insurance market where insurers implement AI for maximized revenue and insights that can help them stay afloat in this vying industry.
2. Shifting to cloud
As the business model continues to change for insurers, with technology being the primary catalyst, insurers switching to the cloud can primarily benefit from a business standpoint. From launching new products to creating an improved customer experience, cloud-native users can operate in an integrated platform that acts as a communication hub among distributors, insurtech, customers, and others.
Cloud computing can accelerate innovation and improve customer experience by replacing legacy systems. With cloud adoption, you can leverage big data and strategize your workflow accordingly to minimize future risks and process claims faster to eliminate fraudulent occurrences and create new cross-sell opportunities.
B2B insurers deal with company data worth millions that must be protected at all costs. Data stored in the cloud can be secured and backed up as and when required, safekeeping client data at all times. Client data becomes accessible to agents who follow specific protocols to access the data.
As the B2B insurance market becomes more tech-savvy and customer-centric, cloud adoption has become more common among insurers, mainly because of the cost-saving factor. Companies no longer need to invest in hardware and software products separately to look after different aspects of a business. Insurers can have all the data, audit reports, and safety measures within one synchronized platform.
Cloud users in the insurance sector can further incorporate hosted phones or hosted PBX in the cloud to amplify customer communications and streamline the entire customer experience dynamically. Briefly put, the cloud is the way ahead for B2B insurers, and it will benefit the insurance sector mainly in the following decades.
3. Internet of Things (IoT)
As a customer-oriented sector, the B2B insurance market aims at delivering personalized services in the upcoming years to maximize customer retention rate and customer value. However, retaining customers and keeping them from looking elsewhere during renewals can be challenging in this competitive marketplace.
Insurers need to make themselves omnipresent and offer the best to their clients.
B2B clients are particular about their requirements and are much more likely to move to a different insurer in the blink of an eye; hence B2B insurers are constantly aiming at staying at the top of their game with several tech trends. IoT has presented numerous opportunities for insurers to open newer distribution channels, predict future risks, and launch new products.
With the help of advanced IoT technologies, insurers can look towards a refined business model built in a connected ecosystem where customer data is acquired from broader channels and used to its fullest potential, keeping customers at the center of focus.
For instance, B2B clients can partner with companies that harness IoT technology and new ecosystems to understand client requirements from a B2B perspective and launch new products and services.
IoT can also help insurers to cut down on maintenance costs and affordably implement newer models. For example, IoT has automated maintenance mechanisms that remove the need for manual maintenance and reduce future risks.
B2B insurers can generate more revenue with better customer interaction features implemented through IoT and leverage sensor-driven decision analytics to curb fraud.
4. Digital ecosystems
As the line between different sectors begins to blur with technologies and diverse ecosystems continue to rise, B2B insurers are looking forward to being a part of this ecosystem to stay competitive and evolve with the changing customer expectations.
Ecosystems are primarily customer-centric interfaces where different players in the market sell products and services. While the leading ecosystem players, such as Amazon and Google, operate to meet specific customer needs, other ecosystems cater to various industries and their evolving market demands.
For a long time, the insurance industry has been low-involvement and less engaging, failing to attract target customers seamlessly.
On top of the lucrative nature of the B2B insurance market, it has always faced challenges in engaging customers in the long run, especially since the pandemic. With digital ecosystems in place, insurers can easily reach out to thousands of clients and convert them into warm leads much faster.
By integrating with existing platforms, insurers can participate in the ecosystem and acquire clients through distribution channels. Alternatively, insurers can play the orchestrator role in an ecosystem, combining different services onto one integrated platform and offering end-to-end services to clients.
By acting as an orchestrator, B2B insurers can reach out to more clients through the ecosystem and provide higher customer satisfaction, thereby maximizing retention.
It should be kept in mind that playing the role of orchestrator brings in more profits; however, it also puts insurers in an incredibly challenging landscape. They require acute analytics, digital expertise, and legit customer access to operate against fierce competitors such as Apple, Amazon, and Google to stay afloat.
5. Adopting ESG trends
With climate change becoming a global issue and businesses working towards a sustainable, climate-conscious approach, B2B insurers are looking forwards to adopting ESG trends in the upcoming years.
While the ESG, short for Environmental, Social, and Governance, aims at conserving the earth, most insurers are driven towards adopting ESG due to multiple opportunities on the revenue front.
While businesses in other sectors are adopting a sustainable, climate-friendly approach, insurers are digging into the possibility of launching newer products that mitigate against potential losses by weather-related damage or natural disasters to drive profits.
Therefore, insurers are inclined to take firmer stances on climate and sustainability factors with ESG in the upcoming years to cover ESG issues within the B2B framework and address the needs of the time.
While insurers can look at a more considerable profit margin as they develop newer policies in alignment with ESG, they also create broader prospects to gain clients seeking coverage on ESG issues. With most corporates and Fortune 500 companies stepping towards sustainable business models, this is an excellent opportunity for insurers to leverage in the upcoming years.
Stay ahead of your competitors with the latest tech trends!
While lower insurance rates, changing customer expectations, and the global economy dealt quite a blow to the insurance industry in 2022, the B2B insurance market has come out victorious by harnessing effective strategies and solutions that cater to B2B clients dynamically.
B2B insurers are now incorporating strategies that keep customers engaged and maximize profits in the long run. In addition to the abovementioned trends, B2B insurers are strengthening their marketing agendas to increase sales and bring in clients.
With the B2B insurance market looking promising in the upcoming years, insurers still have a lot of opportunities to explore and incorporate into their operational strategies to stay ahead of the curve and create an overwhelming presence and response from clients. To learn more about the top trends in the B2B insurance market, read more blogs at Asteya.